The tech giant will spend another $100 million on buying back its stock.
CLEARWATER — Tech Data Corp. (symbol: TECD) will spend another $100 million on its existing share repurchase plan, a prepared statement says.
Prior to today, Tech Data's directors had already set aside $100 million to buy back shares of the company's common stock. Today's announcement doubles that total investment, to $200 million total.
The per-share value of the technology distributor's stock has fluctuated around $50 so far in 2011. Based on its current price, enterprise value and number of shares outstanding, the repurchase of $100 million of its own shares could boost Tech Data's stock value by 5%.
“The increase to our current share repurchase program reflects the company's strong financial performance and our confidence in its long-term growth prospects,” said Robert M. Dutkowsky, chief executive officer, in a statement.
Since 2005, Tech Data has spent $675 million to buy back 17.7 million of its own shares.