Fidelity National Information Services Inc. (FIS) gained more than 6% to $28.23 in today’s trading session, the most since May 6, a day after the payment-processor said it plans to buy back as much as $2.5 billion shares of its stock at a price range of $29 to $31 a share, which represents a premium of at least 9% to the stock’s Tuesday close, through a modified “Dutch auction” tender offer.
“The recapitalization plan we are announcing today…represents the culmination of a thorough evaluation of the factors impacting the value of our common stock, our borrowing capacity and significant free cash flow generation,” FIS Executive Chairman William P. Foley, II said in a statement. “Our strong financial position enables us to incur this reasonable amount of additional debt, return value to our shareholders through a substantial share repurchase program and maintain the financial flexibility to continue executing our business plan…”
In addition to this new share repurchase authorization, the co., which makes software and sells consulting services to banks, said that 13.6 million shares remain available for repurchase under its existing three-year stock repurchase authorization which was announced in February 2010.
FIS shares were up $0.97, or 3.65%, to $27.53 rtq at 2:09 E.T. in New York Stock Exchange.
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