CLEAR announces 4,000,000 block share repurchase agreement with Delta Airlines and $100 million increase to share repurchase authorization

Rhea-AI Summary

CLEAR Secure, Inc. (NYSE: YOU) has announced a significant stock repurchase agreement with Delta Air Lines, Inc. The company will repurchase 4,000,000 shares of Class A Common Stock from Delta in Q3 2024. Additionally, CLEAR's Board of Directors has authorized a $100 million increase to its existing share repurchase program.

Despite this transaction, Delta remains a significant shareholder, retaining 4,277,958 shares of CLEAR's Class C Common Stock. Both companies expressed their commitment to continuing their partnership, which began in 2016. After the Delta repurchase, approximately $100 million remains available under CLEAR's repurchase authorization.

Positive

• Repurchase of 4,000,000 shares potentially increasing shareholder value
• $100 million increase in share repurchase authorization
• Continued strategic partnership with Delta Air Lines

Negative

• None.

Insights

Financial Analyst

CLEAR's repurchase of 4,000,000 shares from Delta Airlines and the $100 million increase in share repurchase authorization are significant financial moves. This transaction reduces the number of outstanding shares, potentially increasing earnings per share and shareholder value. The additional $100 million authorization signals confidence in the company's financial position and future prospects.

However, it's important to note that Delta retains 4,277,958 shares of Class C Common Stock, maintaining a substantial stake in CLEAR. This ongoing partnership suggests continued strategic alignment between the two companies. The repurchase's impact on CLEAR's liquidity and future growth investments should be closely monitored by investors.

Market Research Analyst

This move by CLEAR demonstrates a strategic approach to capital allocation and shareholder value creation. The share repurchase from Delta could be interpreted as a vote of confidence in CLEAR's intrinsic value, potentially signaling that management believes the stock is undervalued. The additional $100 million authorization further reinforces this sentiment.

From a market perspective, this action might lead to increased investor interest and potentially support the stock price. However, it's essential to consider the broader market conditions and CLEAR's competitive position in the secure identity sector. The continued partnership with Delta, a major player in the airline industry, could provide CLEAR with a competitive edge in the travel security market.

NEW YORK, Aug. 5, 2024 /PRNewswire/ -- CLEAR Secure, Inc. (NYSE: YOU), ("CLEAR ", or "The Company"), the secure identity company, announced the repurchase of 4,000,000 shares of Class A Common Stock in the third quarter of 2024 pursuant to a block share purchase agreement with Delta Air Lines, Inc. ("Delta") (NYSE: DAL).

Delta continues to own 4,277,958 shares of CLEAR's Class C Common Stock.

"CLEAR is an important partner whose technology enhances the travel experience for Delta's customers," said Ranjan Goswami, Delta's Senior Vice President, Consumer Experiences. "We look forward to our continued partnership."

"Delta was an early investor in CLEAR in 2016 and meaningfully accelerated our growth - a true win-win partnership," said Caryn Seidman Becker, CLEAR's CEO. "We look forward to continued collaboration as we create frictionless experiences for travelers."

CLEAR announced that its Board of Directors authorized a $100 million increase to its existing Class A Common Stock share repurchase program. Pro forma for the Delta repurchase, approximately $100 million in aggregate remains available under the repurchase authorization.

ABOUT CLEAR
CLEAR's mission is to create frictionless experiences. With over 22 million members and a growing network of partners across the world, CLEAR's identity platform is transforming the way people live, work, and travel. Whether you are traveling, at the stadium, or on your phone, CLEAR connects you to the things that make you, you – making everyday experiences easier, more secure, and friction-free. CLEAR is committed to privacy done right. Members are always in control of their own information, and we never sell member data. For more information, visit clearme.com.

Forward-Looking Statements
This release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any and such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including those described in the Company's filings within the Securities and Exchange Commission, including the sections titled "Risk Factors" in our Annual Report on Form 10- K. The Company disclaims any obligation to update any forward-looking statements contained herein.

Media Contact:
CLEAR
media@clearme.com 

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SOURCE CLEAR

FAQ

How many shares is CLEAR repurchasing from Delta Airlines?

CLEAR is repurchasing 4,000,000 shares of Class A Common Stock from Delta Airlines in the third quarter of 2024.

What is the increase in CLEAR's share repurchase authorization?

CLEAR's Board of Directors has authorized a $100 million increase to its existing Class A Common Stock share repurchase program.

How many shares of CLEAR does Delta Airlines still own after the repurchase?

After the repurchase, Delta Airlines continues to own 4,277,958 shares of CLEAR's Class C Common Stock.

What is the total amount available under CLEAR's repurchase authorization after the Delta transaction?

After the Delta repurchase, approximately $100 million in aggregate remains available under CLEAR's repurchase authorization.