The Nasdaq OMX Group, Inc. (Nasdaq:NDAQ) today announced that its Board of Directors has granted an additional authorization for the Company to repurchase up to $300 million of the company's common stock, or approximately 8 percent of its outstanding shares at the current share price.
Purchases by NASDAQ OMX under this program may be made from time to time at prevailing market prices in open market purchases, privately-negotiated transactions, block purchase techniques or otherwise, as determined by NASDAQ OMX's management. The purchases will be funded from existing cash balances.
Lee Shavel, NASDAQ OMX's EVP and Chief Financial Officer, said: "NASDAQ OMX continues to generate substantial free cash flow, and we continue to execute on our strategy to deploy that capital effectively. Since January 2009, we have repurchased $1.1 billion of outstanding common stock, representing approximately 50 million shares at an average price of $21.85. These repurchases have collectively reduced our share base by almost 22% in that time period. Share repurchases are an important part of our balanced capital deployment strategy, which also includes a recently initiated quarterly dividend and bolt-in acquisitions. All of our capital deployment efforts are supported by a robust return-on-invested-capital discipline which is targeted to deliver maximum value for our shareholders."
This program does not obligate NASDAQ OMX to acquire any particular amount of common stock. The timing, frequency and amount of repurchase activity will depend on a variety of factors such as levels of cash generation from operations, cash requirements for investment in NASDAQ OMX's business, acquisitions, current stock price, market conditions and other factors. The share repurchase program may be suspended, modified or discontinued at any time.