BOSTON, June 16, 2014 /PRNewswire/ -- PAREXEL International Corporation (Nasdaq: PRXL) announced today that it has entered into an Accelerated Share Repurchase (ASR) agreement with Goldman Sachs & Co. to repurchase an aggregate of$150 million of the Company's common stock. The ASR is part of the Company's share repurchase program authorizing the repurchase of up to $150 million, as originally announced on June 2, 2014.
Under the ASR agreement, PAREXEL will receive approximately 2.3 million shares at the inception of the ASR. The total number of shares ultimately repurchased 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 approximately six months.
The ASR will be funded through cash on hand, and/or existing credit facilities. As of March 31, 2014, the Company had cash and cash equivalents of approximately $299 million and availability under an existing line of credit of $290 million.
Josef von Rickenbach, Chairman and CEO of PAREXEL stated, "The accelerated share repurchase program represents an important step toward continuing to optimize the capital structure of the Company, and demonstrates our commitment to creating, enhancing, and returning value to shareholders."
The repurchased shares will be cancelled and returned to the status of authorized and unissued shares. As of March 31, 2014, PAREXEL had approximately 56.9 million common shares outstanding.
About the Company
PAREXEL International Corporation is a leading global bio/pharmaceutical services organization, providing a broad range of knowledge-based contract research, consulting, and medical communications 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, medical education and reimbursement. PAREXEL Informatics, Inc., a subsidiary of PAREXEL, provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL operates in 75 locations throughout 50 countries around the world, and has approximately 15,335 employees. For more information about PAREXEL International visit www.PAREXEL.com.
PAREXEL is a registered trademark of PAREXEL International Corporation, and Perceptive Informatics is a trademark of Perceptive Informatics, Inc. All other names or marks may be registered trademarks or trademarks of PAREXEL International Corporation, Perceptive Informatics, Inc. or their respective owners and are hereby acknowledged.
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 and actual events may differ significantly from those suggested or indicated 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, general economic conditions and other factors discussed more fully in the section entitled "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 as filed with the SEC on May 2, 2014, 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.