Globus Medical03.25.20
Globus Medical Inc., a musculoskeletal solutions company, announced the Board of Directors authorized the repurchase of $200 million of the company’s common stock.
“We believe the recent stock market volatility has created a significant divergence between the intrinsic value of Globus Medical and its value in the market,” said David Paul, Executive Chairman. “Given our growth and profitability profile, we believe the company’s shares will reflect our above market performance over the long term. Our strong cash position enables us to purchase a significant number of shares without limiting our ability to continue to invest in strategic growth opportunities.”
The timing and actual number of shares repurchased will be determined by management at its discretion and will depend on a variety of factors, including market price of the shares, general business and market conditions, applicable legal requirements, and alternative investment opportunities. The repurchase program will be executed consistent with the company’s capital allocation strategy of prioritizing investment to grow the business over the long term.
Repurchases may be made through privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The repurchase program has no time limit and may be suspended for periods or discontinued at any time. The Company intends to utilize its cash reserves to fund the share repurchase program.
“We believe the recent stock market volatility has created a significant divergence between the intrinsic value of Globus Medical and its value in the market,” said David Paul, Executive Chairman. “Given our growth and profitability profile, we believe the company’s shares will reflect our above market performance over the long term. Our strong cash position enables us to purchase a significant number of shares without limiting our ability to continue to invest in strategic growth opportunities.”
The timing and actual number of shares repurchased will be determined by management at its discretion and will depend on a variety of factors, including market price of the shares, general business and market conditions, applicable legal requirements, and alternative investment opportunities. The repurchase program will be executed consistent with the company’s capital allocation strategy of prioritizing investment to grow the business over the long term.
Repurchases may be made through privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The repurchase program has no time limit and may be suspended for periods or discontinued at any time. The Company intends to utilize its cash reserves to fund the share repurchase program.