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EDS (EDS) shares rose 1.7 percent to $21.92.

The move would make EDS the second major technology player to consider a business spin-off after Motorola set plans to sell its chip business to the public. See full story.

EDS says it wants to focus on its core business of providing information technology to corporate clients.

"A minority IPO or private offering in PLM Solutions would enable EDS to leverage the value of this key asset," EDS Chairman Michael Jordan said in a statement. "By operating as a software company in a growing space, PLM Solutions will be able to focus solely on the PLM market, while in turn supporting EDS' sharpened focus on our core business."

PLM Solutions generated $879 million in revenue and $138 million in operating profit in 2002.

EDS said in June that it would focus on its core information technology outsourcing services business. PLM Solutions was designated a complementary subsidiary business at that time.

The moves by EDS and Motorola provide further evidence of a rebound in the IPO market, which hasn't seen a major spin-off deal all year.

Analyst Natalie Walrond at Pacific Growth Equities said the move is "good news," but the overall business at the EDS software unit is still weak.

"While the news has been incrementally positive for EDS, we continue to recommend investors stay on the sidelines at the moment," Walrond said in a note to clients.