iGate Corporation to hive off Mastech Holdings

{image-iGate Corporation_09092008.jpg news.oneindia.in}Bangalore, Sep 9: iGate Corporation, a global mid-tier software services company, has decided to hive off its staffing services subsidiary, Mastech Holdings. The Nasdaq-listed company said its board of directors has set Sep 16 as the record date for the proposed tax-free spin-off of Mastech, which provides IT staffing and consulting services to Fortune 1,000 companies.

Speaking about hiving off its staffing arm, Phaneesh Murthy, CEO of the company said, "Separating the Mastech business from iGate is the last stage of the restructuring process we began four years ago and at the end of September, we will have a singular focus, a pure play services provider, whose integrated technology operations model provides great value to our clients, employees and shareholders," he said.

Mastech CEO Steven Shangold said, "As an independent company, Mastech will leverage its own rich history and reputation as a leading provider of IT staffing services, to deliver long term shareholder value. We are well positioned through our experienced management team, skilled professionals, unique global recruitment engine and long standing client relationships to take advantage of the significant market opportunities available".

At present the company has approximately 53.9 million shares of common stock issued and outstanding. Based on the distribution ratio, iGate expects to distribute approximately 3.6 million shares of Mastech Common Stock in connection with the spin-off.