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IGate Corp. (NASD: IGTE), an information technology services and staffing company, announced plans this week to divest its professional services business, which includes firms iGate Mastech and RPOworldwide. IGate will either sell the business or conduct a tax-free spin-off to iGate shareholders. The company will treat the business as a discontinued operation starting Jan. 1.
"Our global solutions and professional services businesses operate in different markets with markedly different business models," Sunil Wadhwani and Ashok Trivedi, co-founders and co-chairmen of iGate, said in a statement. "The divestiture will better position each business to benefit from their unique business and growth opportunities."
The company also announced that effective April 1 Phaneesh Murthy will take over as CEO from Wadhwani, who had served as CEO since the company's founding in 1987.
Murthy served as CEO of iGate Global Solutions since 2003.
In addition, iGate CFO Mike Zugay will retire and Ramachandran Natesan, presently CFO of iGate Global Solutions, will take his place.