OpenText (NASDAQ: OTEX) has announced an increase in its share repurchase program, raising the authorized limits under the current share repurchase program by 50% to US$450 million. The company's fiscal 2025 normal course issuer bid (NCIB) has been increased by US$150 million for the purchase for cancellation of up to a maximum aggregate value of US$450 million of its common shares.
Since the beginning of the NCIB, OpenText has repurchased approximately 8.9 million common shares for an aggregate value of approximately US$258 million.
Additionally, the company has established an automatic share purchase plan (ASPP) with its broker to facilitate repurchases of the common shares. The ASPP has been pre-cleared by the Toronto Stock Exchange (TSX) and will be effective on March 14, 2025. It will terminate on the earliest of the date on which the maximum purchase limits under the NCIB are reached, August 6, 2025, or the company terminates the ASPP in accordance with its terms.
The maximum number of common shares that may be acquired under the NCIB will remain unchanged at the 21,179,064 common shares previously approved by the TSX. Common shares can be repurchased under the NCIB in open market transactions on the TSX, the NASDAQ Global Select Market, and/or alternative trading systems in Canada and/or the United States, subject to applicable law and stock exchange rules.
OpenText's CEO & CTO, Mark J. Barrenechea, expressed confidence in the business and operating model to generate strong margins, cash flows, and long-term shareholder value, leading to the decision to raise the authorized limits under the share repurchase program.
This announcement reflects the company's commitment to capital allocation strategy and creating shareholder value. Today the company's shares have moved 2.7% to a price of $25.78. If you want to know more, read the company's complete 8-K report here.
