IT Consulting Firm Cognizant Launches $1.5 Billion Accelerated Share Buyback

IT consulting firm Cognizant Technology Solutions Corp. said Tuesday it has entered into an accelerated $1.5 billion share buyback agreement with Barclays Bank PLC, Citibank N.A., and UBS AG, London Branch. Under terms of the deal, Cognizant will receive about 21.5 million shares on March 14. The final number will be based on the volume-weighed average stock price less a discount and other potential adjustments. The final settlement of the agreement is expected to take place during or before the third quarter. The company will fund the repurchases using cash and its existing credit facility. Shares were indicating higher premarket, and have gained about 2% in the last 12 months, underperforming the S&P 500's 17.5% gain.