Globant Initiates $125 Million Share Buyback to Boost Value
Globant Launches Significant Share Repurchase Program
Globant S.A. (NYSE: GLOB) has taken an important step towards reinforcing shareholder value with a newly approved share repurchase program aimed at enhancing its financial strategy. The board of directors has authorized the allocation of up to $50 million per quarter, totaling a maximum of $125 million over the course of the program, which will run from the fourth quarter of one year through the fourth quarter of another.
Our Vision for Shareholder Value
Globant is not just focused on current market conditions; the company is applying an AI-first strategy in its approach to business. Martin Migoya, chairman and CEO, expressed confidence in this move by stating, "As our business continues to solidify, aligned with our AI-first mindset, this program reflects our commitment to increasing value for our shareholders. We aim to build an innovative and thriving business that benefits everyone associated with us."
Financial Strategy Underpinning the Program
Juan Urthiague, CFO, emphasized that this repurchase plan is fully supported by the company’s robust cash flow generation. He explained that it forms a vital part of a disciplined capital allocation strategy. As the share repurchase program progresses, Globant will continue to invest in its growth initiatives, maintaining a balanced approach toward business expansion and financial management.
Discretion and Flexibility in Repurchases
The actual execution of this program will rely on various factors, including market conditions, business performance, and share price. This flexibility allows Globant to adapt its repurchase strategy based on the ever-changing economic landscape. Management retains the discretion to determine the timing and volume of each repurchase. They can choose between several methods for share buybacks, whether through open market purchases or using accelerated repurchase techniques.
Commitment to Shareholder Interests
Importantly, the company isn’t bound to repurchase a fixed number of shares. The magnitude of the buyback can change over time as business conditions evolve. The share repurchase program can also be paused or suspended as per management's directives, reflecting the dynamic nature of the market.
About Globant: A Leader in Digital Transformation
Globant prides itself on empowering organizations to navigate an increasingly digital and AI-driven future. The company merges technological innovation with creativity to facilitate enterprise transformations, creating experiences that resonate with customers. Its focus on digital reinvention and advanced AI solutions helps clients translate challenges into tangible business success.
Global Presence and Recognition
With over 30,000 employees across more than 35 countries, Globant collaborates with industry giants, including Google and Electronic Arts. Recent accolades, such as being named a Worldwide Leader in AI Services and other categories by IDC MarketScape, underscore Globant’s commitment to excellence.
The company also stands out as the fastest-growing IT brand globally and has been featured as a case study in prestigious institutions such as Harvard and MIT. Its involvement with organizations like The Green Software Foundation highlights its commitment to sustainable technology practices.
Frequently Asked Questions
What is the purpose of Globant's share repurchase program?
The share repurchase program aims to enhance shareholder value and demonstrates the company's confidence in its long-term strategic vision.
How much has Globant allocated for this repurchase program?
Globant has authorized a total of $125 million for the share repurchase program, with plans to allocate $50 million per quarter.
When will the share repurchase program take place?
The program will commence in the fourth quarter of one year and continue through the fourth quarter of the following year.
What factors influence the timing of share repurchases?
The timing and price of repurchases depend on market conditions, share performance, regulatory requirements, and the company's capital needs.
How does Globant ensure it remains a leader in innovation?
Globant prioritizes investment in strategic growth initiatives and leverages its AI-first strategy to drive innovation across sectors.
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