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The Hackett Group Announces $55M Dutch Auction
Posted February 21, 2012
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MIAMI--The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, announced that it will commence a modified "Dutch auction" tender offer to purchase up to $55 million in value of its common stock par value $0.001 per share on February 22, 2012. This would represent approximately 27 percent of its outstanding common shares at the high end of the pricing range. The Company intends to pay for the share repurchase from its existing cash and cash equivalents balances which were approximately $33 million as of December 30, 2011 and with a new $50 million credit facility.
"The tender offer reflects our continued commitment to enhancing shareholder value and provides an attractive use of our capital given Hackett's strong cash flow and current market valuation," commented Ted A. Fernandez, Chairman and Chief Executive Officer of The Hackett Group. "We are very pleased that our cash balances and new credit facility allow us to return capital to our shareholders while providing continued flexibility to pursue our growth initiatives. We continue to believe significant value exists in our current operations through the execution of our long-term business strategies."
Modified Dutch Auction Tender Offer
Hackett will offer to purchase up to $55 million in value of its Common Stock at a price not greater than $5.00 nor less than $4.25 per share. In accordance with the rules of the Securities and Exchange Commission ("SEC"), Hackett may increase the number of shares of stock accepted for payment in the offer by no more than 2 percent of the outstanding stock without amending or extending the offer. On February 17, 2012, the closing price of Common Stock was $3.89 per share. The tender offer will commence tomorrow, February 22, 2012, and will expire at 5:00 p.m., New York City time, on March 21, 2012, unless extended.
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