Purchases 1.1 Million Shares Directly from Sagard
NEW YORK, Sept. 06, 2016 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq:HSON), a leading global talent solutions company, today announced that on September 5, 2016 it agreed to purchase 1.1 million shares of Hudson stock from Sagard Capital Partners, L.P. This share repurchase reduces Hudson’s shares outstanding by approximately 3%. The company paid $1.80 per share, equal to the company’s volume weighted average price over the prior 20 day period.
In addition, Sagard has agreed to not sell Hudson shares for the next 60 days without the company’s prior written approval.
The company’s board of directors authorized the block trade as part of the company’s previously announced $10 million share repurchase program. Following the board’s approval of the share repurchase program in July 2015, the company has regularly been in the market buying back its stock and this block trade allowed the company to accelerate its buyback program. In addition, the board of directors has determined that the company will stop paying a quarterly cash dividend.
“The board’s primary focus is maximizing shareholder value. We believe Hudson’s stock price is materially undervalued and as we considered our capital allocation options, the board determined that accelerating our stock buyback program with this block trade would better maximize shareholder value than paying a dividend,” said Jeff Eberwein, chairman of the board of directors at Hudson. “We will consider additional block trades in the future and we expect to increase our $10 million share repurchase program once the current program has been completed.”
Hudson is a global talent solutions company with expertise in leadership and specialized recruitment, recruitment process outsourcing, talent management and contracting solutions. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. Operating around the globe through relationships with millions of specialized professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at Hudson.com.
This press release contains statements that the company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe” and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions' that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the company’s ability to successfully execute its strategic initiatives; risks related to fluctuations in the company's operating results from quarter to quarter; the ability of clients to terminate their relationship with the company at any time; competition in the company's markets; the negative cash flows and operating losses that may recur in the future; restrictions on the company's operating flexibility due to the terms of its credit facilities; risks associated with the company's investment strategy; risks related to international operations, including foreign currency fluctuations; the company's dependence on key management personnel; the company's ability to attract and retain highly skilled professionals; the company's ability to collect its accounts receivable; the company’s ability to maintain costs at an acceptable level; the company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the company's exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the company’s business reorganization initiatives and limits on related insurance coverage; the company’s ability to utilize net operating loss carry-forwards; volatility of the company's stock price; the impact of government regulations; and restrictions imposed by blocking arrangements. Additional information concerning these and other factors is contained in the company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
David F. Kirby
Hudson Global, Inc.