Check Point® Software Technologies Ltd. (NASDAQ: CHKP) today announced that its board of directors has authorized the expansion of the company's on-going share repurchase program by an additional $2 billion. Under the share repurchase program, as extended, Check Point is authorized to continue to repurchase up to $325 million each quarter.
As of December 31, 2019, Check Point has approximately 145.5 million ordinary shares outstanding. Since the beginning of the share repurchase program, Check Point has repurchased approximately 171.1 million shares for a total purchase price of approximately $9.2 billion. The updated plan extends the company's existing repurchase program, which had provided for the repurchase of up to $325 million shares each quarter, up to an aggregate of $2 billion, and which is expected to be completed in the second quarter of 2020.
Share purchases under the extended repurchase program will take place in open market transactions or in privately negotiated transactions and may be made from time to time depending on market conditions, share price, trading volume, and other factors. Such purchases will be made in accordance with applicable U.S. securities laws and regulations. For all or a portion of the authorized repurchase amount, Check Point may enter into a plan that is compliant with Rule 10b5-1 of the United States Securities Exchange Act of 1934 that is designed to facilitate these purchases. The repurchase program does not require Check Point to acquire a specific number of shares, and may be suspended from time to time or discontinued. The share repurchases are expected to be funded from available working capital.