SunGard, the US technology group, is to split up its business and spin-off its $1.2bn (€978m) disaster recovery division in a move that could spark a takeover of one or both new divisions.

On Monday, the IT firm's board approved plans to spin off SunGard Availability Services, one of the biggest providers of disaster recovery services to financial institutions, from its software and processing business, in a one-for-one share deal advised by Credit Suisse First Boston and law firm Shearman & Sterling.