Cerner Corporation today announced that its board of directors approved a stock repurchase program on Sept. 4, 2015, at its regularly scheduled Board meeting, authorizing the repurchase of up to $245 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 Sept. 4, 2015 closing price, approximately 4.1 million shares, or 1.2 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 December 2013, which was amended in May 2014, has been completed.
“At current prices, we believe the repurchase of our stock is a good use of funds,” said Neal Patterson, Cerner’s chairman, CEO, and co-founder. “This program reflects our commitment to enhancing long-term shareholder value and our confidence in Cerner’s prospects as a leader in the growing health care industry.”
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