PITTSBURGH, June 16, 2015 /PRNewswire/ -- Mastech
Holdings, Inc. (NYSE MKT: MHH), a national provider of Information
Technology staffing services, announced today the completion of its
previously announced agreement to acquire Hudson Global's U.S. IT
staffing business. The planned acquisition was announced on
May 11, 2015, subject to customary
closing conditions.
As previously disclosed, the financial terms of the acquisition
included a $17 million cash purchase
price paid at closing, with the seller retaining working capital.
The cash purchase price was 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 acquisition, Kevin
Horner, Mastech's Chief Executive Officer, stated, "After
several months of working towards a successful closing with the
Hudson IT team , I am more excited than ever about the long-term
potential of our combined company. Given Hudson's impressive
stable of direct retail clients and talented sales and recruitment
team, I'm confident that this transaction will prove to be a
rewarding experience for our shareholders, our collective clients
and our employees as well."
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 benefits to Mastech from completing the
acquisition and the expected performance of Mastech following
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.