Markit Ltd. (MRKT) Announces $200M Accelerated Buyback Plan

Markit Ltd. (Nasdaq: MRKT) announced an aggregate $200 million accelerated share repurchase (ASR) with J.P. Morgan Securities LLC, as agent for JPMorgan Chase Bank, National Association, London Branch and Morgan Stanley & Co. LLC. The transaction completes the $500 million share repurchase program announced in June 2015, with an additional $50 million share repurchase approved by Markit’s board of directors in connection with the ASR.

Jeff Gooch, chief financial officer at Markit, said: “Our share repurchases in 2015 demonstrate our disciplined and balanced capital allocation strategy and our confidence in Markit’s growth prospects. Our strong balance sheet and significant free cash flow generation provide the flexibility to complete buybacks while continuing to pursue value enhancing acquisitions. With this transaction, we’re delivering on our commitment to drive shareholder value.”

Under the ASR, Markit will pay an initial $200 million in the aggregate to JPMorgan and Morgan Stanley to repurchase outstanding Markit common shares. Upon commencement of the ASR, Markit expects to initially reduce its share count by approximately 5.1 million shares and Markit may receive additional shares at or prior to maturity of the ASR. The total number of shares ultimately to be repurchased by Markit under the ASR will generally be based on the daily volume-weighted average price of the shares during the calculation period for each ASR, less an agreed discount. At final settlement of each ASR, Markit may be entitled to receive additional shares, or, under certain limited circumstances, be required to deliver shares to the relevant ASR counterparty.

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