The medical equipment manufacturer will initiate the payment to Citibank this Thursday. Under the terms of the deal, ResMed will immediately receive 80% of the repurchased shares. The final share count will be determined by the stock's volume-weighted daily average price throughout the contract period, which is scheduled to conclude by December.
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ResMed Launches $450 Million Accelerated Share Buyback Program
ResMed is deploying $450 million to repurchase its own stock through an accelerated agreement with Citibank. Funded by existing cash reserves and the recent divestiture of its MatrixCare business, the move marks a significant utilization of an authorization dating back to 2014, signaling the company's commitment to returning capital to shareholders.
Management confirmed that this transaction was already factored into the full-year financial guidance provided to investors last month. By utilizing proceeds from the sale of MatrixCare, the company is effectively reallocating capital from its business portfolio directly into its equity structure.
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