Cognizant Technology Solutions Corporation announced that it has entered into accelerated share repurchase (“ASR”) agreements with Barclays Bank PLC, Citibank N.A., and UBS AG, London Branch to repurchase an aggregate of $1.5 billion of Cognizant’s Class A common stock.
Under the terms of the ASR agreements, approximately 21.5 million of the shares to be repurchased was received by Cognizant. The final number of shares to be repurchased will be based on the volume-weighted average stock price of Cognizant’s Class A common stock less a discount and subject to potential adjustments pursuant to the terms of the ASR agreements. Final settlements of the transactions under the ASR agreements are scheduled to occur during or prior to the third quarter of 2017. Cognizant will fund the ASR program on March 14, 2017 from cash on hand and its existing credit facility.
“We are pleased to initiate this accelerated share repurchase program as we begin to execute on our enhanced capital return program,” said Francisco D’Souza, Chief Executive Officer. “These repurchases demonstrate the commitment of the Board and management to deliver on our previously announced comprehensive plan to enhance shareholder return.”