Summary
Nasdaq, Inc. (NDAQ) announced on July 21, 2021, that it has entered into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC to buy back $475 million of its common stock. This move is part of the company's existing $1.5 billion share repurchase authorization and is intended to offset dilution to non-GAAP earnings per share resulting from a recent issuance of stock related to the sale of its U.S. fixed income business. The initial delivery of shares is expected on July 23, 2021, with final settlement anticipated in the fourth quarter of 2021, based on a volume-weighted average price. This ASR agreement signals Nasdaq's commitment to enhancing shareholder value by actively managing its share count and mitigating potential earnings dilution. Investors should note that the final number of shares repurchased is subject to market conditions and potential adjustments, which could impact the exact dilutive effect. The transaction reflects confidence from management in the company's financial position and its ability to generate returns, even while undertaking strategic divestitures.
Key Highlights
- 1Nasdaq entered into an Accelerated Share Repurchase (ASR) agreement to buy back $475 million of its common stock.
- 2The ASR is executed with Goldman Sachs & Co. LLC.
- 3This repurchase is part of Nasdaq's existing $1.5 billion share repurchase program.
- 4The primary stated goal is to offset dilution to non-GAAP earnings per share from a recent stock issuance tied to the sale of the U.S. fixed income business.
- 5An initial delivery of approximately 2,039,940 shares is expected on July 23, 2021.
- 6The final number of shares repurchased will be determined by the volume-weighted average price during the ASR period, less a discount and subject to adjustments.
- 7Final settlement of the ASR is expected to be completed in the fourth quarter of 2021.