Electronics For Imaging, Inc. (EFI) announced that its Board of Directors has approved the repurchase of up to $100 million of the company's outstanding shares of common stock. The company will enter into a trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate the repurchases in accordance with certain price, volume and timing conditions. While the share repurchase authorization expires in 18 months, the company expects to complete the repurchases by the end of 2013.
EFI will fund the program using a portion of the proceeds from the pending sale of the company's headquarters and cash on hand. EFI previously announced on July 19 that it entered into a real estate asset sale agreement with Gilead Sciences, Inc., to sell its Foster City facility for $180 million. The transaction is expected to close in October 2012, subject to various closing conditions.
The new share repurchase program allows the company to repurchase its shares through open market purchases, privately negotiated transactions or otherwise, subject to market conditions, applicable legal requirements and other factors, including the conditions specified under any 10b5-1 plan. Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without notice. The company has no obligation to repurchase shares under the authorization.
This authorization replaces an existing share repurchase program approved by the board in August 2011 that provided for the repurchase of up to $30 million of the company's common stock. The remaining $20 million of authorization under the previous program will not be used.