Temenos to commence buyback of up to 3 million shares
GENEVA, Switzerland – 18 June 2013 – Temenos (SIX: TEMN), the market leading provider of mission critical software to the banking industry, today announces a share buyback programme for 2013 of up to three million shares for cancellation.
Temenos is highly cash generative with low leverage and a strong balance sheet, with c.USD 300m in cash and undrawn facilities. This provides Temenos with significant financial flexibility enabling investment in the business, including industry leading R&D spend, and funding for targeted acquisitions whilst also providing for returning value to shareholders.
In February 2013, Temenos announced its intention to pay a regular annual dividend, a reflection of management’s confidence in the strength and quality of the company’s cashflows. Temenos has consistently delivered operating cashflows in excess of EBITDA and has guided to once again deliver this target in 2013. Temenos now intends to return value to shareholders in 2013 in addition to the annual dividend payment with the commencement of a share buyback programme.
The share buyback programme is expected to run to the end of 2013 and, if fully exercised, would equate to approximately 4.2% of the outstanding capital of the company. All shares repurchased under the buyback programme will be proposed for cancellation in a capital reduction at the AGM in 2014. The programme will be managed on a second trading line by Bank Vontobel AG. Temenos retains the right to cease the share buyback programme at any time.
Further information on the buyback, including regular progress and buyback notices, is available here.