Cognizant hikes repurchase to $200 mn

IT and business process outsourcing services provider Cognizant Technology Solutions Corporation has expanded its share repurchase programme to $200 million.

Under the new proposal, the company will purchase an additional $100 million worth of Cognizant common stock as part of its repurchase deal announced in September.

As on December 5, Cognizant has repurchased 3.1 million shares for $95.4 million at an average price of $30.90 per share.

The company said repurchases may be made through the open market or through privately-negotiated transactions.

The programme is funded By company's cash on hand and cash generated from operations.

At the end of its third quarter ended September 30, Cognizant had more than $800 million in cash and short-term investments and has 50,000 employees.

Total income in December this year is expected to be between $2.125 billion and $2.13 billion, up over 49 per cent compared with 2006.

Cognizant also announced that John Fox, former vice-chairman of Deloitte & Touche LLP and global director with Deloitte Consulting, has been elected to its board of directors.