Cognizant Tech to Join S&P 500

Alberto-Culver drops down in weight.
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Cognizant Tech (CTSH) - Get Report will join the S&P 500 Index after the close of trading on Thursday.

Cognizant will replace the newly constituted

Alberto-Culver

(ACV) - Get Report

, which will drop down to the S&P Mid-Cap 400. In a deal expected to close on Thursday, Alberto-Culver is issuing a $25-a-share special dividend and splitting its remainder into two companies: Alberto-Culver and

Sally Beauty Holdings

(SBH) - Get Report

.

Shares of Cognizant rose $2.95, or nearly 4%, to $79.75 in recent after-hours trading. Index funds mirroring the S&P 500 would be expected to purchase shares of Cognizant to update their holdings.