iGate hives off staffing arm

BANGALORE: IT services provider iGate Corporation Board of Directors on Monday approved and set a record date of September 8 for the proposed tax-free spin-off of Mastech Holdings Inc, a leading provider of IT staffing services and consulting services.

The Board declared a dividend of one share of common stock of Mastech for 15 shares of iGate common stocks. The distribution of Mastech shares is expected to take place on September 30, 2008 to holders of iGate common stock with the record date of September 16, 2008, a release said here on Monday.

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."

"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.