With $721 million remaining on an existing share repurchase authorization, robotic-surgery specialist Intuitive Surgical (NASDAQ: ISRG ) said it will add another $779 million to the buyback program, bringing the total to approximately $1.5 billion.
Additionally, in connection with the buyback, Intuitive Surgical also said it was entering into an accelerated repurchase agreement with Goldman Sachs (NYSE: GS ) to buy $500 million worth of company stock. Most of the shares to be bought back from the investment house will be delivered in two weeks' time, with the remaining shares to be received and retired by Oct. 29.
Intuitive Surgical President and CEO Dr. Gary S. Guthart said, "Our program to repurchase $1.5 billion in Intuitive Surgical stock, including $500 million on an accelerated basis, demonstrates our commitment to our shareholders as well as our confidence in the da Vinci surgical system and the benefits it brings to patients."
The remaining $1 billion on the authorization will be made through cash and investments, of which it had approximately $3 billion worth on hand. The buybacks will be made depending on market conditions, but Intuitive Surgical cautions that the program may also be suspended or terminated at any time.