Advertisment

Check Point announces $1 billion expansion of share repurchase program

author-image
Harmeet
New Update

BANGALORE, INDIA: Check Point Software Technologies Ltd (CHKP), the worldwide leader in securing the Internet, announced that its board of directors has authorized an extension and expansion to the company's on-going share repurchase program.

Advertisment

Under the updated plan, effective immediately, Check Point is authorized to repurchase up to $200 million of its outstanding shares each quarter up to an aggregate of $1 billion. In 2013, we repurchased approximately 10.1 million shares in an aggregate amount of approximately $538 million which represented an average repurchase per quarter of $135 million.

As of December 31, 2013, Check Point has approximately 192.3 million ordinary shares outstanding. Check Point started its share buyback program in 2003, and has since repurchased approximately 104.5 million shares for a total purchase price of approximately $3.1 billion. The new plan replaces the previous repurchase plan adopted in July 2012, which provided for the repurchase of shares for $1 billion over a period of two years.

"We believe that our market leadership and long term growth prospects make this an effective time to further utilize our cash to increase shareholder value," concluded Tal Payne, CFO of Check Point.

Share purchases will take place in open market transactions or in privately negotiated transactions and may be made from time to time depending on market conditions, share price, trading volume and other factors. Such purchases will be made in accordance with applicable U.S. securities laws and regulations.

For all or a portion of the authorized repurchase amount, Check Point may enter into a plan that is compliant with Rule 10b5-1 of the United States Securities Exchange Act of 1934 that is designed to facilitate these purchases. The repurchase program does not require Check Point to acquire a specific number of shares, and may be suspended from time to time or discontinued. The share repurchases will be funded from available working capital.

tech-news