BOSTON--(BUSINESS WIRE)--PAREXEL International Corporation (Nasdaq:PRXL), a leading global biopharmaceutical services provider, announced today that the Company entered into an accelerated share repurchase agreement (ASR) with HSBC Bank USA, National Association, to purchase shares of its common stock for an aggregate purchase price of $200 million. The Company is acquiring these shares as part of the stock repurchase plan authorized by the Board that was announced on October 26, 2016. Pursuant to the agreement, on November 23, 2016, the Company will initially receive approximately 2.8 million shares of common stock, representing 80 percent of the shares to be repurchased by the Company under the Agreement. The shares will be repurchased at a price of $57.51 per share, which was the closing price of the common stock on November 21, 2016. The total number of shares ultimately repurchased by PAREXEL under the agreement will be determined upon final settlement, using prices based generally on the volume-weighted average price of the Company’s common stock over a period of time not expected to exceed six months. These shares will be cancelled and restored to the status of authorized and unissued shares.
The Company intends to use cash on hand, cash generated from operations, existing credit facilities or other financing to fund the share repurchase program. As of September 30, 2016, the Company had cash and cash equivalents of approximately $326 million and availability under an existing line of credit of $325 million. As of November 11, 2016, the Company had approximately 53.3 million common shares outstanding.
Mr. Josef von Rickenbach, Chairman and CEO of PAREXEL stated, “This share purchase program demonstrates our commitment to optimize the capital structure of the Company and to maximize value for our shareholders. After the completion of this current share repurchase program, the Company will have returned more than $750 million to shareholders since Fiscal Year 2013.”
About PAREXEL International
PAREXEL International Corporation is a leading global biopharmaceutical services company, providing a broad range of expertise-based clinical research, consulting, medical communications, and technology solutions and services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, and reimbursement. PAREXEL Informatics provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL has offices in 85 locations in 51 countries around the world, and had approximately 18,750 employees in the first quarter. For more information about PAREXEL International visit www.PAREXEL.com.
PAREXEL and PAREXEL Informatics are trademarks or registered trademarks of PAREXEL International Corporation or its affiliates.
This release contains “forward-looking” statements regarding future results and events, including, without limitation, statements regarding the Company’s intention to repurchase shares of its common stock from time to time under the stock repurchase program, the intended use of any repurchased shares, the source of funding for the stock repurchase program, and the Company’s expected financial results, future growth and customer demand. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “intends,” “appears,” “estimates,” “projects,” “will,” “would,” “could,” “should,” “targets,” and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. The Company’s actual future results may differ materially from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, the market price of the Company’s stock prevailing from time to time, the nature of other investment opportunities presented to the Company from time to time, the Company’s cash flow from operations, and other general and international economic, political, and other risks. Such factors and others are discussed more fully in the section entitled “Risk Factors” of the Company’s Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission, which “Risk Factors” discussion is incorporated by reference in this press release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this press release.