Investing.com -- Salesforce Inc shares are trading roughly 2.5% higher shortly before market open on Monday after the company announced it commenced a $25 billion share buyback, the largest in its history.

The software company said it began the prepayment and initial delivery of approximately 103 million shares under accelerated share repurchase agreements entered into on March 11 with certain financial institutions. This transaction represents the immediate execution of half of the $50 billion aggregate share repurchase program authorized by Salesforce's board of directors in February.

"We are aggressively repurchasing shares because we are so confident in the future of Salesforce," said Marc Benioff, chair and chief executive officer of Salesforce.

Robin Washington, president and chief operating and financial officer of Salesforce, said the $25 billion accelerated share repurchase reflects the company's increased conviction in the durability of its growth and cash flow trajectory.

Salesforce entered into the accelerated share repurchase agreements with Banco Santander, Bank of America, Citibank, JPMorgan Chase Bank and Morgan Stanley, with J. Wood Capital Advisors serving as an advisor.

The initial delivery of 103 million shares represents approximately 80% of the total shares anticipated to be repurchased, based on the closing price of Salesforce's common stock on March 11. The final number of shares to be repurchased will be determined generally by the volume-weighted average price of Salesforce's common stock during the term of the transaction, less a discount and subject to adjustments. Final settlement is expected to occur in the third or fourth quarter of Salesforce's fiscal year 2027.