Vontier Announces $100 Million Accelerated Share Repurchase Program

Rhea-AI Summary

Vontier (NYSE: VNT) has announced a $100 million accelerated share repurchase (ASR) agreement with Goldman Sachs. This move is part of Vontier's existing $500 million share repurchase authorization, which had approximately $290 million remaining as of August 1, 2024. The ASR is expected to be settled during the third quarter of 2024, funded by available cash on-hand.

CEO Mark Morelli emphasized the company's commitment to unlocking shareholder value and confidence in Vontier's long-term strategic vision. After this ASR, Vontier will have about $190 million remaining in its current repurchase authorization. The company intends to continue repurchases to drive shareholder value, subject to various factors including market conditions.

Positive

• Commitment to $100 million accelerated share repurchase program
• Demonstrates confidence in company's long-term value creation potential
• Strong cash position allowing for share buybacks
• $290 million remaining in existing share repurchase authorization
• Intention to continue repurchases to drive shareholder value

Negative

• Reduction in cash reserves that could be used for other strategic initiatives

Insights

Financial Analyst

Vontier's $100 million Accelerated Share Repurchase (ASR) program is a strategic move that signals management's confidence in the company's future prospects. This decision has several implications:

• Immediate reduction in outstanding shares, potentially boosting earnings per share (EPS)
• Efficient use of excess cash, indicating strong cash flow generation
• Positive signal to the market about the company's valuation

With $290 million remaining from the original $500 million authorization, this ASR represents a significant portion (34.5%) of the available funds. The company's commitment to continue repurchases suggests a long-term focus on shareholder value creation. However, investors should monitor the impact on Vontier's liquidity and its ability to invest in growth opportunities.

Market Research Analyst

Vontier's strategic positioning in the mobility ecosystem is noteworthy. The company's focus on critical technologies for connecting, managing and scaling mobility aligns with major industry trends. Key observations:

• Strong secular tailwinds in their target markets suggest potential for sustained growth
• Differentiated value propositions indicate competitive advantages
• Commitment to balancing share repurchases with investments for profitable growth demonstrates a prudent approach

The ASR program, combined with ongoing repurchase plans, may provide support for the stock price in the near term. However, long-term success will depend on Vontier's ability to capitalize on mobility ecosystem transformations and deliver on its growth strategy.

RALEIGH, N.C.--(BUSINESS WIRE)-- Vontier Corporation (NYSE: VNT), a leading global provider of critical technologies and solutions to connect, manage and scale the mobility ecosystem, today announced that it has entered into an accelerated share repurchase agreement (“ASR”) with Goldman Sachs, to repurchase $100 million of Vontier’s common stock.

"The decision to launch this accelerated share repurchase program underscores our belief in the long-term strategic vision and value creation potential of our company,” said Mark Morelli, President and Chief Executive Officer. “Our portfolio is well-aligned in attractive end markets with strong secular tailwinds, and we deliver differentiated value propositions that enable customer success. We are committed to unlocking shareholder value through maximizing returns on capital deployment while balancing investments to accelerate profitable growth as we transform the mobility ecosystem.”

The ASR transactions will be completed as part of Vontier’s existing $500 million share repurchase authorization which was announced in May 2021 and replenished in May 2022, and had approximately $290 million remaining as of August 1, 2024. The final number of shares to be repurchased will be based on the daily volume-weighted average price of Vontier’s common stock during the term of the ASR, less a discount and subject to adjustments pursuant to the terms of the ASR. Vontier expects to fund the repurchases with available cash on-hand and expects the ASR transactions will be settled during the third quarter of 2024.

Subject to completion of this ASR, Vontier is expected to have approximately $190 million remaining under its current repurchase authorization. While the amount and timing of future share purchases are subject to a number of factors, including Vontier’s business, share price and general market conditions, the Company intends to continue repurchases to drive shareholder value. The remaining share repurchases may be made from time to time through open market purchases, 10b5-1 plans, future ASR programs or through privately negotiated transactions.

ABOUT VONTIER

Vontier (NYSE: VNT) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. Leveraging leading market positions, decades of domain expertise and unparalleled portfolio breadth, Vontier enables the way the world moves – delivering smart, safe and sustainable solutions to our customers and the planet. Vontier has a culture of continuous improvement and innovation built upon the foundation of the Vontier Business System and embraced by colleagues worldwide. Additional information about Vontier is available on the Company’s website at www.vontier.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805358392/en/

INVESTOR RELATIONS CONTACT

Ryan Edelman

Vice President, Investor Relations

Vontier Corporation

+1 (984) 238-1929

ryan.edelman@vontier.com

MEDIA CONTACT

Nicole Beck

Vontier Corporation

nicole.beck@vontier.com

Source: Vontier Corporation

FAQ

What is the size of Vontier's (VNT) new accelerated share repurchase program?

Vontier (VNT) has announced a $100 million accelerated share repurchase program.

When is Vontier's (VNT) accelerated share repurchase expected to be settled?

Vontier (VNT) expects the accelerated share repurchase to be settled during the third quarter of 2024.

How much will remain in Vontier's (VNT) share repurchase authorization after the new ASR?

After the $100 million ASR, Vontier (VNT) is expected to have approximately $190 million remaining in its current share repurchase authorization.

What is the purpose of Vontier's (VNT) accelerated share repurchase program?

Vontier's (VNT) accelerated share repurchase program aims to unlock shareholder value and demonstrates the company's confidence in its long-term strategic vision and value creation potential.