Wix, a leading global SaaS platform to create, manage and grow an online presence, announced that its Board of Directors has authorized a share repurchase program, under which the company may repurchase up to $300 million of its ordinary shares.
This repurchase program, as well as last year’s $200 million share repurchase along with other initiatives, demonstrates the Board’s ongoing focus on offsetting dilution associated with stock-based compensation, reducing share count over time and increasing shareholder value.
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“We remain confident in our ability to generate free cash flow as laid out in our three-year plan, enabling us to continue to invest in our strategic initiatives while also returning capital to shareholders. We have built a healthy balance sheet and believe that our current stock price represents an attractive valuation for a repurchase,” said Lior Shemesh, Wix CFO. “This new program further demonstrates our ongoing commitment to managing dilution as part of our capital allocation priorities and increasing shareholder value.”
Repurchases under the program may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). The company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its shares under this authorization. The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements (including Israeli court re-approval as needed), prevailing stock prices and other considerations. This program does not obligate the company to acquire any particular amount of ordinary shares and the program may be extended, modified, suspended or discontinued at any time at the company’s discretion. The company expects to fund repurchases with cash on hand and future cash generated from its operations.
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