Blucora (BCOR) - Get Report shares were rising 20% Tuesday after the company announced it would initiate a new $100 million share repurchase program, and said it planned to buy 1st Global, a tax-focused wealth management company.
The tax and financial services provider said that the repurchase authorization is effective immediately and doesn't have an expiration date.
"The new stock repurchase program enhances our capital allocation strategy and provides us with a complementary tool to deliver value to our shareholders," said Davinder Athwal, Blucora's chief financial officer. "While we remain focused on debt reduction and investments that will drive long-term organic growth, this authorization provides additional flexibility and an alternative for cash redeployment through opportunistic buybacks."
The company said it reached an agreement to but 1st Global for $180 million in stock.
Blucora also said it expects a run-rate adjusted EBITDA accretion of $23 to $24 million by the end of the year.
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