TEANECK, N.J., June 15, 2018 /PRNewswire/ -- Cognizant
Technology Solutions Corporation (Nasdaq: CTSH), today announced
that it has entered into an accelerated share repurchase ("ASR")
agreement with Morgan Stanley & Co. LLC to repurchase an
aggregate of $600 million of
Cognizant's Class A common stock. In February 2017, the Company announced a plan to
return $3.4 billion to stockholders
by the end of 2018 through a combination of $2.7 billion in stock repurchases and
$0.7 billion in dividends. With
the ASR announced today, the Company will deliver early on its
commitment as to stock repurchases with the anticipated final
settlement of the ASR during the third quarter of 2018.
Under the terms of the ASR agreement, approximately 6.49 million
of the shares to be repurchased will be received by Cognizant on
June 15, 2018. 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 agreement. Cognizant will fund the ASR program on
June 15, 2018 from cash on hand.
About Cognizant
Cognizant (Nasdaq-100: CTSH) is one
of the world's leading professional services companies,
transforming clients' business, operating and technology models for
the digital era. Our unique industry-based, consultative approach
helps clients envision, build and run more innovative and efficient
businesses. Headquartered in the U.S., Cognizant is ranked 195 on
the Fortune 500 and is consistently listed among the most admired
companies in the world. Learn how Cognizant helps clients lead with
digital at www.cognizant.com or follow us @Cognizant.
Forward Looking Statements
This press
release includes statements which may constitute forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including, but
not limited to, express or implied forward-looking statements
relating to our ASR program and our capital return plan, the
accuracy of which are necessarily subject to risks, uncertainties,
and assumptions as to future events that may not prove to be
accurate. These statements are neither promises nor guarantees, but
are subject to a variety of risks and uncertainties, many of which
are beyond our control, which could cause actual results to differ
materially from those contemplated in these forward-looking
statements. Existing and prospective investors are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. Factors that could cause
actual results to differ materially from those expressed or implied
include general economic conditions, changes in the regulatory
environment, including with respect to immigration and taxes, and
the other factors discussed in our most recent Annual Report on
Form 10-K and other filings with the Securities and Exchange
Commission. Cognizant undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable securities law.
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SOURCE Cognizant