Clarivate Announces New $500 Million Share Repurchase Authorization
Rhea-AI Summary
Clarivate (NYSE:CLVT) has announced a new $500 million share repurchase program for its outstanding ordinary shares, effective from January 1, 2025, through December 31, 2026. This program replaces the current one ending December 31, 2024, under which the company repurchased $300 million of shares, including $200 million in Q3-Q4 2024.
Additionally, Clarivate has prepaid $75 million of term-loan debt in Q4, bringing total 2024 prepayments to $133 million. The new buyback program, part of the company's Value Creation Plan, allows for open-market purchases through various methods, including Rule 10b5-1 trading plans, subject to market conditions and regulatory requirements.
Positive
- Authorization of new $500 million share repurchase program for 2025-2026
- Successful completion of previous $300 million buyback program
- Debt reduction through $133 million in loan prepayments during 2024
Negative
- None.
News Market Reaction – CLVT
On the day this news was published, CLVT gained 7.24%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The new share repurchase program replaces the current share repurchase program which terminates December 31, 2024, under which the Company repurchased
Clarivate also announced that it prepaid
"As we execute against our Value Creation Plan, we expect to deploy capital to the most value enhancing opportunities," said Matti Shem Tov, Chief Executive Officer of Clarivate. "This new repurchase program is in line with this goal and reflects the Clarivate Board's strong confidence in the Company's ability to drive growth and enhanced financial performance. We will continue to maintain a balanced approach to our capital allocation program that includes returning capital to shareholders through repurchases and deleveraging."
The new share repurchase program does not obligate Clarivate to repurchase any set dollar amount or number of shares and may be modified, suspended, or terminated at any time without prior notice. Under the new share repurchase program, Clarivate is authorized to conduct open-market purchases of its ordinary shares from time to time through any method or program, including through Rule 10b5-1 trading plans or the use of other techniques as permitted by its shareholder authorization, approved by the Board or a designated committee thereof, and subject to availability of ordinary shares, price, market conditions, alternative uses of capital, and applicable regulatory requirements, at management's discretion.
Forward-Looking Statements
This communication includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements" within the meaning of the "safe harbor provisions" of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "seeks," "projects," "intends," "plans," "may," "will," or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, anticipated cost savings, results of operations, financial condition, liquidity, prospects, growth, strategies, and the markets in which we operate. Such forward-looking statements are based on available current market material and management's expectations, beliefs, and forecasts concerning future events impacting us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk Factors of our annual report on Form 10-K. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Please consult our public filings with the SEC or on our website at www.clarivate.com.
About Clarivate
Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.
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SOURCE Clarivate Plc
FAQ
How much is Clarivate's new share repurchase program worth and when does it start?
How much did CLVT repurchase under its current buyback program in 2024?
How much debt did Clarivate prepay in Q4 2024?
Is CLVT obligated to complete the entire $500 million share repurchase?
