Check Point® Software Technologies Ltd. (NASDAQ: CHKP), a leading provider of cyber-security solutions globally, today announced that its board of directors has authorized the expansion of the company’s on-going share repurchase program. Under the updated repurchase plan, effective immediately, Check Point is authorized to increase the quarterly repurchase of its outstanding shares by 30%, up to $325 million, and the overall program by 100%, to an aggregate of $2 billion.
As of June 30, 2018, Check Point has approximately 156.2 million ordinary shares outstanding. Check Point began its share repurchase program in 2003, and since then has repurchased approximately 154.5 million shares for a total purchase price of approximately $7.3 billion. The updated plan expands the company’s existing repurchase plan announced in August 2017, which had provided for the repurchase of up to $250 million shares each quarter, up to an aggregate of $1 billion, which is expected to be completed in the third quarter of 2018.
Share purchases under the expanded repurchase plan will take place in open market transactions or in privately negotiated transactions and may be made from time to time depending on market conditions, share price, trading volume, and other factors. Such purchases will be made in accordance with applicable U.S. securities laws and regulations. For all or a portion of the authorized repurchase amount, Check Point may enter into a plan that is compliant with Rule 10b5-1 of the United States Securities Exchange Act of 1934 that is designed to facilitate these purchases. The repurchase plan does not require Check Point to acquire a specific number of shares, and may be suspended from time to time or discontinued. The share repurchases are expected to be funded from available working capital.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events. Forward-looking statements in this press release include, but are not limited to, statements related to our expectations regarding Check Point’s share repurchase program and the updated share repurchase plan. Check Point’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; general market, political, economic and business conditions; the market conditions, share price, trading volume of Check Point’s ordinary shares; Check Point’s strategic decisions regarding use of capital; and Check Point’s working capital available for share repurchases. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including Check Point’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 27, 2018. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.
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