Nuance To Buy Back $500 Mln Of Common Stock From Icahn Group - Quick Facts

(RTTNews) - Nuance Communications, Inc. (NUAN) said it has agreed to repurchase $500 million, or about 26.32 million shares, of its common stock from Carl Icahn and certain of his affiliates.

Nuance will repurchase the stock at a price of $19.00 per share, a discount of 6 percent to the stock's closing price of $20.21 on March 9, 2016.

The company expects the transaction to reduce Nuance's projected fiscal 2016 weighted average shares outstanding by about 14.3 million shares. The transaction is separate from the company's previously authorized share repurchase program, the continued execution of which will be limited for the foreseeable future.

Nuance will fund the transaction through a combination of $375 million cash on hand and a 90-day promissory note with a face amount of $125 million. The company expects to close the transaction on or around March 15, 2016.