UPDATE: Intuitive Surgical Raises Buyback Plan to $1.5B, Uses $500M Accelerated Buyback
Intuitive Surgical, Inc. (Nasdaq: ISRG), the industry leader in robotic-assisted surgery, today announced that its Board of Directors has authorized the Company to repurchase an additional $779 million of the Company's outstanding common stock. With this authorization, the total amount available for share repurchases by the Company is approximately $1.5 billion, which includes approximately $721 million remaining from previous authorizations.
In connection with this share repurchase authorization, the Company entered into an accelerated share repurchase program (the "ASR Program") with Goldman, Sachs & Co., ("Goldman") pursuant to which Intuitive Surgical will repurchase $500 million of its common stock from Goldman. A majority of the shares purchased under the ASR Program will be received and retired within 2 weeks. The remaining shares, if any, under the program will be received and retired by October 29, 2013, although they could be received earlier if the ASR Program is ended sooner.
"Our program to repurchase $1.5 billion in Intuitive Surgical stock, including $500 million on an accelerated basis, demonstrates our commitment to our shareholders as well as our confidence in the da Vinci surgical system and the benefits it brings to patients," said Dr. Gary S. Guthart, President and CEO of Intuitive Surgical.
Additional purchases by the Company under the remaining authorization, or $1.0 billion, will depend upon market conditions and may be made from time to time in open market purchases, privately negotiated transactions, accelerated share repurchase programs, issuer self-tender offers or otherwise, as determined by the Company's management. The repurchases will be made in compliance with, and at such times as permitted by, federal securities law and may be suspended or discontinued at any time. The Company expects to fund the repurchase program through cash and investments. As of June 30, 2013, the Company had approximately $3.0 billion of cash, cash equivalents and investments.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.