The spin-off, which was completed on September 30, 2008, was implemented through a tax-free dividend to iGATE shareholders. According to iGATE, it distributed one share of Mastech common stock for every 15 shares of iGATE common stock outstanding as of the close of business on September 16, 2008.
Shareholders will receive a cash payment in lieu of fractional shares of Mastech. iGATE will not retain any shares of Mastech and going forward will report past results of the professional services business as discontinued operations.
Mastech provides information technology services including IT consulting; OneSource co-managed projects and supplemental IT resources. Mastech’s niche focus includes business iIntelligence/data warehousing; enterprise resource planning (ERP); service oriented architecture (SOA); web development and IT project management. Mastech also provides recruitment process outsourcing (RPO) services and brokerage operations, staffing services through its RPOworldwide and Global Financial Services subsidiaries.
Mastech will now operate as an independent public company with its common stock trading on the American Stock Exchange under the symbol MHH. The new company will have approximately 3.6 million shares outstanding.
Sunil Wadhwani and Ashok Trivedi, co-chairmen of Mastech Holdings, said: Operating as an independent company will provide Mastech greater financial and operational flexibility, and will allow it to aggressively take advantage of market opportunities.
In addition, iGATE also announced that it completed the divestiture of its clinical research business to Ginde Lifesciences at the end of August 2008.
