ActivIdentity (ACTI) Announces $10M Stock Buyback Program

More News related to ACTI

More News related to Stock Buybacks

February 18, 2010 8:39 AM EST

ActivIdentity Corporation (NASDAQ: ACTI) announced today that its Board of Directors has approved a stock repurchase program pursuant to which ActivIdentity may repurchase up to $10 million or approximately 8 % of the company's outstanding shares of common stock in the open market from time to time over the next 12 months.

The timing and amount of repurchase transactions will depend on market conditions and corporate and regulatory considerations and may be suspended or discontinued at any time. The Board of Directors has also authorized that certain of these purchases may be made under a plan adopted pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934.

"Based on the current market prices, we believe that our stock is undervalued and that the repurchase program is a good investment of available funds," said Grant Evans, chairman and chief executive officer at ActivIdentity. "Our strong balance sheet enables us to actively invest cash in areas that we believe will drive future value for shareholders, such as stock repurchases and growth initiatives."

ActivIdentity Corporation had 46.1 million shares of common stock outstanding and up to 2.0 additional shares to be issued pursuant to the merger agreement dated December 13, 2009 between the company and CoreStreet Limited as of January 31, 2010. In addition the company's cash, cash equivalents, restricted cash and investments totaled approximately $82 million on December 31, 2009.