IGate Corp., one of the Pittsburgh region's technology success stories, said today that it will divest its professional services business through a sale or a tax-free spin-off to its shareholders.
Separately, the company announced that effective April 1, Phaneesh Murthy will replace Sunil Wadhwani as chief executive, a post held by Wadhwani since iGate's founding in 1987.
Murthy Phaneesh has served as CEO of iGate Global Solutions, the company's offshore services subsidiary, since 2003, and was previously head of Global Sales and Marketing for Infosys Technologies.
In a statement about the planned professional services business divestiture, Wadhwani and iGate co-founder Ashok Trivedi said, "This separation is a logical next step for the company. "Our board has reviewed the divestiture and believes it will benefit our shareholders, employees and customers."
iGate said it has retained Credit Suisse Securities to assist with the divestiture.
No reason was given for the leadership change, although Wadhwani and Trivedi cited the success of the Global Solutions business under Murthy.
"Phaneesh and his team have done an outstanding job in transforming iGate Global Solutions. We are confident that the new executive team at iGate Corp. will lead the company to continued success in the years ahead," they said.
The company also announced that Ramachandran Natesan, the current chief financial officer of iGate Global Solutions, will add the title of CFO of iGate on April 1, replacing Michael J. Zugay who will retire after 13 years of service.
