ZipRecruiter®, a leading online employment marketplace, today announced that it has entered into an accelerated share repurchase agreement (“ASR”) with Wells Fargo Bank, National Association, to repurchase $50.0 million of ZipRecruiter’s common stock.
Under the ASR, ZipRecruiter will make an initial payment of $50.0 million to Wells Fargo Bank, National Association, and will receive an initial delivery of approximately 2.6 million shares of its common stock on December 16, 2022. The final number of shares to be repurchased will be based on the volume-weighted average price of ZipRecruiter’s common stock during the term of the ASR, less a discount. The final settlement of the ASR is expected to occur by the first quarter of 2023.
The ASR transaction will be effectuated pursuant to ZipRecruiter’s previously announced $450.0 million share repurchase program. As of December 15, 2022, approximately $160.7 million remained available for future repurchases under this program and approximately $110.7 million will remain available after completion of the ASR. There is no expiration date for the share repurchase program, and it will continue until otherwise suspended, terminated or modified at any time for any reason by ZipRecruiter’s board of directors.
ZipRecruiter believes investing in undervalued equity is an attractive option in its balanced capital allocation approach. ZipRecruiter also believes in its ability to generate strong cash flow and invest in attractive organic and inorganic opportunities in the future.
