Check Point Software Technology (CHKP) Boosts Share Buyback Plan by 100% to Aggregate $2B
Check Point® Software Technologies Ltd. (NASDAQ: CHKP), a leading provider of cyber-security solutions globally, today announced that its board of directors has authorized the expansion of the company’s on-going share repurchase program. Under the updated repurchase plan, effective immediately, Check Point is authorized to increase the quarterly repurchase of its outstanding shares by 30%, up to $325 million, and the overall program by 100%, to an aggregate of $2 billion.
As of June 30, 2018, Check Point has approximately 156.2 million ordinary shares outstanding. Check Point began its share repurchase program in 2003, and since then has repurchased approximately 154.5 million shares for a total purchase price of approximately $7.3 billion. The updated plan expands the company’s existing repurchase plan announced in August 2017, which had provided for the repurchase of up to $250 million shares each quarter, up to an aggregate of $1 billion, which is expected to be completed in the third quarter of 2018.
Share purchases under the expanded repurchase plan 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 plan 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 are expected to be funded from available working capital.