Global Payments (GPN) Announces $125M Accelerated Repurchase, Raises Guidance

January 17, 2013 7:33 AM EST
Global Payments Inc. (NYSE: GPN), a leading, worldwide provider of electronic transaction processing solutions, announced today that it has entered into an accelerated share repurchase (ASR) agreement with Bank of America, N.A. to repurchase an aggregate of $125 million of the company's common stock. The ASR is part of the Board authorized program to repurchase up to $300 million of the company's common stock. Under the agreement, the company will receive and retire approximately two million shares at the inception of the ASR. The total number of shares ultimately repurchased under the agreement will be determined upon final settlement and will be based on the volume-weighted average price of the company's common stock during the repurchase program. The company anticipates that all repurchases under the ASR will be completed no later than May 31, 2013.

As a result of the repurchase program, the company has increased its full-year expectations for fiscal 2013 diluted earnings per share on a cash basis by three cents to a range of $3.64 to $3.71, or growth of 3% to 5% over fiscal 2012. On a constant currency basis, the company expects diluted earnings per share on a cash basis to grow 5% to 7%. Annual fiscal 2013 GAAP diluted earnings per share, excluding the impact of all intrusion remediation costs, are now expected to be in a range of $3.04 to $3.11. There were no changes to the company's full-year annual revenue expectations.

David Mangum, Senior Executive Vice President, Chief Financial Officer, commented, "We are delighted with this accelerated repurchase program which demonstrates our commitment to executing share repurchases while continuing to drive organic growth and acquisitions."

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