Company Exploring Additional Ways to Increase Shareholder Value
PITTSBURGH, Dec. 4 /PRNewswire-FirstCall/ -- iGATE Corporation (Nasdaq: IGTE), a Pennsylvania corporation and leading provider of global IT and BPO services ("iGATE"), has finalized the price at which it will acquire the shares of iGATE Global Solutions, Ltd. ("iGS") that it does not currently own at 410 rupees per share or approximately $10.40 per share. The total cost of this transaction when completed will be approximately $77 million and will be funded through existing cash reserves within the Company.
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iGS will be applying to the stock exchanges in India for delisting its shares and the process is expected to be completed by December 31, 2007. When this transaction is finalized, iGATE will own substantially all of iGS and will be one of a very few U.S. listed offshore services companies.
The Company also announced that it will explore additional steps to enhance shareholder value including the separation of its Professional Services segment ("iPS") through a tax free spin-off to iGATE shareholders or other transaction. Sunil Wadhwani, Co-Chairman and Chief Executive Officer of iGATE, stated: "Our two primary business segments, our offshore services business and our U.S. staffing business, are both strong operations with the scale, cash flow, financial strength and differentiators needed to succeed in their distinct markets. However, given their different customers and business models, we believe that the time is right to explore whether separating these businesses can deliver greater value for our shareholders." At this time, there can be no assurance that this review will result in a transaction, and the Company does not intend to provide an update to this process until it has approved a definitive course of action.
About iGATE Corporation
Pittsburgh, Pennsylvania-based iGATE Corporation (Nasdaq: IGTE) is the first fully integrated technology and operations firm with a global service model. iGATE Corporation, through its offshore subsidiary, iGATE Global Solutions Ltd., enables clients to optimize their business through a combination of process investment strategies, technology leverage and business process outsourcing and provisioning. Services include consulting, enterprise data management and data warehousing, business intelligence and analytics, design, development, systems integration, package evaluation, and implementation, re-engineering and maintenance. iGATE Corporation also offers IT Professional Services in the areas of packaged application implementation, custom development, web services and business intelligence. The Company services more than 300 clients across five continents. Clients rely on iGATE for high quality service, responsiveness, and cost-effective global reach. More information about iGATE is available at http://www.iGATEcorp.com.
Some of the statements contained in this news release that are not historical facts are forward-looking statements. These forward-looking statements include the Company's financial, growth and liquidity projections as well as statements concerning the Company's plans, strategies, intentions and beliefs concerning business cash flows, costs and the markets in which it operates, the proposed delisting of iGS and the Company's plans to separate iPS. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends" and similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to the Company and it assumes no obligation to update the forward statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from the forward-looking statements. These risks include, but are not limited to, the pricing of the shares to be purchased in the delisting, the Company's ability to predict its financial performance, the level of market demand for its services, the highly-competitive market for the types of services offered by the Company, the impact of competitive factors on profit margins, market conditions that could cause the Company's customers to reduce their spending for its services, the Company's ability to create, acquire and build new businesses and to grow existing businesses, attract and retain qualified personnel, reduce costs and conserve cash, currency fluctuations and market conditions in India and elsewhere around the world, political and military tensions in India and South Asia, changes in generally accepted accounting principles and/or their interpretation and other risks that are described in more detail in the Company's filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2006.
SOURCE iGATE CorporationCONTACT:
Michael J. Zugay
Sr. Vice President & CFO of iGATE Corporation
|"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding iGATE Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.