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 September 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.
iGate Corporation CEO Phaneesh Murthy said, "Separating the Mastech business from iGate is the last stage in the restructuring process we began four years ago. We felt that there were no synergies between the two businesses of the company and having a staffing services arm was diluting the overall brand of iGate. With this, we will have a singular focus as a pure-play services provider to provide the greatest value to our clients, employees and shareholders."
The company's board has declared a dividend of one share Mastech common stock for every fifteen shares of iGate common stock held. It means for every 15 iGate shares held by a shareholder, he will be given a Mastech share. iGate currently has approximately 53.9 million shares of common stock issued and outstanding.
After the spin-off, Mastech will be a separate listed company with a revenue of close to $100 million.
The iGate shareholders will get Mastech shares on September 30 based on the proportion of iGate stake held by them as on September 16.
After the spin-off, Mastech will be a separate listed company with a revenue of close to $100 million.
iGate currently has approximately 53.9 million shares of common stock issued and outstanding. Based on the distribution ratio, the company expects to offload approximately 3.6 million shares of Mastech common stock in connection with the spin-off.
