Align Technology Announces $200 Million Stock Repurchase Agreement

align technology

Align Technology (Nasdaq:ALGN) announced today that it has entered into a new accelerated share repurchase agreement with Goldman Sachs.

Tempe, Arizona-based Align has agreed to repurchase $200 million of its common stock as part of its $1 billion stock repurchase program. The company initially announced its buyback program in May 2021.

ALGN shares opened the day up 2.1% at $192.56 a share.

In addition to the accelerated agreement, Align’s President and CEO, Joe Hogan, intends to personally purchase $2 million of Align common stock. That’s on top of the $2 million purchase he made in May.

Under the terms of the agreement, Align plans to initially receive approximately 849,000 shares. The final number of shares to be repurchased will be based on the Company’s volume-weighted share price during the life of the repurchase program. Align intends to fund the transaction with cash. The transaction is expected to close by approximately February 1, 2023.

As of September 30, 2022, Align had approximately 78.2 million shares outstanding. It also had $1.1 billion in cash, cash equivalents, and short- and long-term marketable securities. To date, more than 1.3 million shares of common stock have been repurchased at an average price of $416.39 each. That totals $550 million under the May 2021 $1 billion buyback program.

Following the current accelerated buyback, approximately $250 million remains available under the program.

Align the “engagement” with value enhancement

John Morici, Align’s EVP, Finance and CFO, said the agreement reflects the company’s “commitment to creating value for shareholders and returning capital.” He added that investments are being made in strategic growth drivers at the same time.

He said the company remains able to navigate difficult market conditions. The balance sheet includes more than $1 billion in cash and investments. It also has a healthy cash flow position and no long-term debt, he said.

“I believe in the incredible market opportunity for digital orthodontics and restorative dentistry and the long-term value of Align,” said Hogan. “Regardless of the operating environment, we seek to balance investments to drive growth and long-term strategic priorities that will transform the practice of dentistry and strengthen our business. We will continue to invest in digital solutions and creating need to serve physicians and their patients as we collectively tackle global macroeconomic challenges.”

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