PITTSBURGH, May 11, 2015 /PRNewswire/ -- Mastech
Holdings, Inc. (NYSE MKT: MHH), a national provider of Information
Technology staffing services, announced today that its wholly-owned
subsidiary, Mastech, Inc. has entered into a definitive asset
purchase agreement to acquire Hudson Global's U.S. IT staffing
business. The transaction is subject to customary closing
conditions and expected to close in the second quarter of 2015.
The financial terms of the agreement include a $17 million cash purchase price paid at closing,
with the seller retaining working capital. The cash purchase price
will be paid with a combination of cash balances on hand and
borrowings under the Company's existing credit facility. Mastech
expects the transaction to be immediately accretive to earnings.
Commenting on the planned acquisition, Kevin Horner, Mastech's Chief Executive Officer,
stated, "I'm extremely excited about this opportunity, which will
materially increase our scale and enhance our abilities to service
our collective clients. As I have mentioned on numerous
occasions, a selective acquisition is an important component of our
long-term growth strategy. With its impressive list of direct
retail clients, domestic recruitment focus and adept management
talent, Hudson's U.S. IT Staffing business is a compelling fit for
Mastech, and I believe it will serve to strengthen our overall
business model."
Raptor Partners LLC acted as Company's financial advisor on the
transaction and Pepper Hamilton LLP acted as its legal advisor.
About Mastech Holdings, Inc.:
Leveraging the power of 29 years of
IT experience, Mastech (NYSE MKT:
MHH) provides Information Technology Staffing services in
the disciplines which drive today's business operations.
More information about Mastech can be found at Mastech's website:
www.mastech.com.
Forward-Looking Statements:
Certain statements contained in this release are forward-looking
statements based on management's expectations, estimates,
projections and assumptions. Words such as "expects,"
"anticipates," "plans," "believes," "scheduled," "estimates" and
variations of these words and similar expressions are intended to
identify forward-looking statements, which include but are not
limited to (i) projections of revenues, earnings, and cash
flow, and (ii) the expected completion of the acquisition, the time
frame in which this will occur, the expected benefits to Mastech
from completing the acquisition and the expected performance of
Mastech following completion of the acquisition. These statements
are based on information currently available to the Company and it
assumes no obligation to update the forward-looking statements as
circumstances change. These statements are not guarantees of
future performance and involve certain risks and uncertainties,
which are difficult to predict. Therefore, actual future results
and trends may differ materially from what is forecast in
forward-looking statements due to a variety of factors, including,
without limitation, 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, and the Company's ability
to create, acquire and build new lines of business, to attract and
retain qualified personnel, reduce costs and conserve cash, 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, 2014.
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SOURCE Mastech Holdings, Inc.