WASHINGTON – IBEX Limited (NASDAQ:IBEX), a global provider of BPO and AI-powered customer engagement solutions, has repurchased approximately 20% of its diluted shares outstanding from The Resource Group International, Limited (TRGI). The transaction involved 3,562,341 common shares, purchased at $19.65 per share, equating to the last closing price on the Nasdaq Global Market. The total consideration for the buyback was $70 million, with $45 million paid in cash and the remaining $25 million through seller financing.
This repurchase has altered IBEX’s ownership structure, reducing TRGI’s stake to 1.8 million shares and ending IBEX’s status as a “controlled company” under Nasdaq rules. The company’s board will now have a majority of independent directors, and one of the two current IBEX directors associated with TRGI is set to resign by year-end. Furthermore, IBEX retains the right to repurchase the remaining shares from TRGI within the next four years under certain conditions.
The move is part of IBEX’s broader capital management strategy, which has seen over $27 million in share repurchases since September of the previous year. CEO Bob Dechant expressed that these actions reflect confidence in the company’s growth and financial health. The transition to a board with independent directors is expected to align with Nasdaq’s corporate governance standards and could potentially widen IBEX’s shareholder base.
The agreement with TRGI was approved by a Special Transaction (JO:) Committee of independent members and ratified by the board, with TRGI-employed members abstaining. The committee received independent legal and financial advice, and a fairness opinion was provided to support the transaction.
Following the share buyback, IBEX will suspend its current share repurchase program, with any future decisions on buybacks to be determined by an ongoing assessment of business capital needs and market conditions. The transaction is based on a press release statement from IBEX Limited.
In other recent news, IBEX Limited reported a strong start to fiscal year 2025 with record Q1 revenue of $129.7 million, a 4.1% increase from the previous year. The company’s adjusted EBITDA rose to $15.6 million, and adjusted EPS increased by 30% to $0.52. These recent developments also include the company raising its full-year revenue guidance to between $515 million and $525 million, with adjusted EBITDA expected to reach $67 million to $69 million.
Additionally, IBEX…
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