SonoSite poises for $100M stock buyback

The board of directors of SonoSite, a hand-carried ultrasound manufacturer, has authorized a plan to repurchase up to $150 million of its common stock or outstanding convertible notes for cash, effective Monday, Jan. 18.

In addition, the Bothell, Wash.-based company will purchase up to $100 million of its common stock through a modified “Dutch Auction” tender offer.

Via the terms of the offer, SonoSite is slated to repurchase a maximum of 3,831,417 shares--which represents approximately 22 percent of its currently outstanding common stock--from available cash-on-hand. Shareholders of SonoSite will be able to tender some or all of their shares at a price within the range of $26.10 to $30.00 per share, based on the Jan. 8 closing price of $26.10 per share, said the company.

According to Sonosite, offer materials, including terms and conditions of the tender offer, will be distributed during the week of Jan 18. However, the company said its board has stressed that they are not making any recommendations to shareholders whether or not to tender any shares during this offer.  Rather, the company’s management team is urging shareholders to read the tender offer statement when it becomes available.

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