Fiserv Announces Share Repurchase Authorization
Fiserv, a global provider of payments and financial services technology, announced that its Board of Directors has authorized the repurchase of 60 million shares of the company’s common stock. This new authorization is in addition to the shares remaining under the existing authorization. Fiserv may repurchase shares in the open market or through privately negotiated transactions. The repurchase decisions will be made at the discretion of management, taking into account market conditions and other factors. Notably, this authorization does not have an expiration date.
Fiserv, un fornitore globale di tecnologia per pagamenti e servizi finanziari, ha annunciato che il suo Consiglio di Amministrazione ha autorizzato il riacquisto di 60 milioni di azioni delle azioni ordinarie della società. Questa nuova autorizzazione si aggiunge alle azioni rimanenti sotto l'autorizzazione esistente. Fiserv può riacquistare azioni nel mercato aperto o attraverso transazioni private negoziate. Le decisioni di riacquisto saranno prese a discrezione della direzione, tenendo conto delle condizioni di mercato e di altri fattori. È importante notare che questa autorizzazione non ha una data di scadenza.
Fiserv, un proveedor global de tecnología en pagos y servicios financieros, anunció que su Junta Directiva ha autorizado la recompra de 60 millones de acciones de las acciones ordinarias de la compañía. Esta nueva autorización se suma a las acciones restantes bajo la autorización existente. Fiserv puede recomprar acciones en el mercado abierto o a través de transacciones negociadas de forma privada. Las decisiones de recompra se tomarán a discreción de la dirección, teniendo en cuenta las condiciones del mercado y otros factores. Cabe destacar que esta autorización no tiene fecha de expiración.
Fiserv는 글로벌 결제 및 금융 서비스 기술 제공업체로서, 이사회가 6000만 주의 보통주 매입을 승인했다고 발표했습니다. 이번 새로운 승인은 기존 승인 하에 남아 있는 주식에 추가됩니다. Fiserv는 공개 시장에서 또는 비공식적으로 협상된 거래를 통해 주식을 재매입할 수 있습니다. 재매입 결정은 경영진의 재량에 따라 시장 상황 및 기타 요소를 고려하여 이루어질 것입니다. 특히, 이 승인에는 만료일이 없습니다.
Fiserv, un fournisseur mondial de technologie de paiements et de services financiers, a annoncé que son conseil d'administration a autorisé le rachat de 60 millions d'actions des actions ordinaires de la société. Cette nouvelle autorisation s'ajoute aux actions restantes sous l'autorisation existante. Fiserv peut racheter des actions sur le marché ouvert ou par le biais de transactions privées négociées. Les décisions de rachat seront prises à la discrétion de la direction, en tenant compte des conditions du marché et d'autres facteurs. Il est à noter que cette autorisation n'a pas de date d'expiration.
Fiserv, ein globaler Anbieter von Zahlungs- und Finanzdienstleistungstechnologie, gab bekannt, dass der Vorstand den Rückkauf von 60 Millionen Aktien der Stammaktien des Unternehmens genehmigt hat. Diese neue Genehmigung kommt zu den noch verbleibenden Aktien unter der bestehenden Genehmigung hinzu. Fiserv kann Aktien auf dem offenen Markt oder durch privat ausgehandelte Transaktionen zurückkaufen. Die Rückkaufentscheidungen werden nach Ermessen des Managements getroffen, wobei die Marktbedingungen und andere Faktoren berücksichtigt werden. Bemerkenswert ist, dass diese Genehmigung kein Ablaufdatum hat.
- Authorization to repurchase 60 million shares of common stock.
- Repurchase can occur in the open market or privately negotiated transactions.
- No expiration date for the share repurchase authorization.
- None.
Insights
This substantial share repurchase authorization of 60 million shares demonstrates Fiserv's robust capital return strategy and strong free cash flow generation capabilities. At current market capitalization, this authorization represents a potential buyback of approximately $14 billion, or roughly 10% of the company's market value.
The open-ended nature of this authorization is particularly strategic, as it provides management with maximum flexibility to opportunistically execute purchases when they perceive shares to be undervalued, without the pressure of a deadline. This approach is especially valuable in the current market environment where fintech valuations have experienced significant volatility.
The magnitude of this authorization carries several key implications for investors: First, it suggests management's strong conviction in Fiserv's cash flow sustainability, as the company must generate sufficient free cash flow to fund both these repurchases and ongoing strategic investments. Second, the size indicates that management may view current valuations as attractive relative to their internal assessment of the company's intrinsic value.
From a financial engineering perspective, reducing the share count by approximately 10% could provide meaningful support to earnings per share metrics, assuming consistent operational performance. However, the key differentiator here is Fiserv's position in the payments ecosystem - their ability to maintain such substantial shareholder returns while operating in a highly competitive, technology-driven market suggests significant competitive advantages in their core business.
This authorization also comes at a time when many fintech companies are prioritizing growth investments over shareholder returns, making Fiserv's balanced approach to capital allocation particularly noteworthy. The company's ability to simultaneously invest in technological innovation while maintaining robust shareholder returns demonstrates the maturity and efficiency of their business model.
Fiserv may repurchase shares in the open market or in privately negotiated transactions at the discretion of management, subject to its assessment of market conditions and other factors. This authorization does not expire.
About Fiserv
Fiserv, Inc. (NYSE: FI), a Fortune 500 company, aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500® Index and one of Fortune® World’s Most Admired Companies™. Visit fiserv.com and follow on social media for more information and the latest company news.
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Media Relations:
Melissa Moritz
External Communications
Fiserv, Inc.
+1 516-410-1188
Melissa.Moritz@fiserv.com
Investor Relations:
Julie Chariell
Investor Relations
Fiserv, Inc.
Julie.Chariell@fiserv.com
Source: Fiserv, Inc.
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