Anjali Sud, CEO of VimeoNurPhoto | NurPhoto | Getty ImagesIAC is spinning off its full stake in its video software company, Vimeo, the company announced Tuesday.Following completion of the deal, which is expect to close in the second quarter of 2021, Vimeo will become an independent, publicly traded company.The transaction is expected to take the form of a reclassification of IAC shares, the company said.The planned spinoff comes as software as a service (SaaS) stocks are soaring, boosted in part by the Covid-19 pandemic. Vimeo has reported strong user growth over the past year, with subscribers up 24% in November. Vimeo, which previously focused on streaming entertainment, especially from independent filmmakers, pivoted its plan a few years ago to provide video services for businesses. The company achieved a $2.75 billion valuation in early November, after raising $150 million in equity from Thrive Capital and GIC, IAC said.This will make Vimeo the 11th public company to spin out from IAC. The company last agreed to spin off all of its shares of online dating company Match Group.Subscribe to CNBC on YouTube.