Cerner Announces Share Repurchase Program(2)
March 08, 2016
Cerner Corporation (Nasdaq: CERN) today announced that its board of directors approved a stock repurchase program on March 7, 2016, at its regularly scheduled Board meeting, authorizing the repurchase of up to $300 million of its common stock. The company plans to repurchase shares from time to time in the open market, by block purchase, or possibly through other transactions managed by broker-dealers. No time limit was set for completion of the program.
Based on the March 7, 2016 closing price, approximately 5.7 million shares, or 1.7 percent of the company’s outstanding shares, could be repurchased. The repurchase is intended to offset a portion of the dilution created by future equity grants and will be funded from working capital. The previous stock repurchase program approved by Cerner’s board of directors in September 2015 has been completed.
“We believe the repurchase of our stock is a good use of funds at current prices,” said Marc Naughton, executive vice president and CFO of Cerner. “This program reflects our confidence in Cerner’s growth prospects and our commitment to enhancing long-term shareholder value.”