Vivek Shah, CEO of J2 Global, told CNBC on Tuesday that the company plans to outsource its cloud fax service as management wants to add value in both businesses.

The Los Angeles-based digital media company announced in April the severance plan to create a new publicly traded company called Consensus.

“I think they’re both underrated and I think part of the reason they’re underrated is because they’re in a company,” Shah said in a Mad Money interview with Jim Cramer.

“I think this is going to add a tremendous amount of value and I think it’s great to do it from a position of strength.”

J2 had a market cap of $ 5.5 billion as of the end of Tuesday.

The online fax product is mainly used in the healthcare sector, where hospitals can exchange medical documents for patients while traditional fax machines are being phased out. The fax service accounted for around 22% of the $ 1.49 billion in revenue generated by J2 Global in 2020, according to its annual report.

J2 Global, whose portfolio includes IGN, Mashable and Humble Bundle, predicts Consensus will generate sales of up to $ 342 million this year.

The split will give J2 and Consensus their own dedicated leadership, focus and balance sheet so that the two companies have a clear group of peers to compete with, Shah said.

“The short-term consensus is really a game for me to move from on-prem to cloud,” he said. “In the long run, when the company is really focused, it moves from a document-centric to a data-centric construct.”

As part of the separation, Scott Turicchi, President and Chief Financial Officer of J2, will be named Chief Executive of Consensus. Shah will keep his place at the helm of J2.

The spin-off does not require the approval of the shareholders, who are expected to receive around 80% of the ordinary shares of the new company.

The deal is expected to close in the third quarter.

J2’s shares are up more than 25% since the start of the year. However, since the spin-off was announced, the stock has fallen 4% to $ 122.83.