Business Week (3/08/00) on iGate
'....The reason why IGate has a clearer and potentially more lucrative future has to do with how the new company is being structured. Previously, Mastech was a diversified services company, meaning that it had almost a dozen subsidiaries, all of them revolving around some form of human resources services, but otherwise having little in common. Mastech's new incarnation, IGate, will divide those subsidiaries into nine separate companies, each with a complementary and focused goal, and then bring them public. IGate will continue to maintain an interest in the new companies and manage them as one large group. Meanwhile, the money it makes from these IPOs will go into a capital fund that will be used to acquire new companies.
In other words, IGate, isn't abandoning its old line of business. It's just giving it a structure more like CMGI's. "Of all the ways they could have reorganized the company, this was the smartest," says Wayne Segal, an analyst with Credit Suisse First Boston...' |
