Sonus Networks (NASDAQ: SONS ) is making an off-market deal to help soak up some of its common stock. The company announced that it has reached 0an agreement with several of its shareholders to repurchase 7.4 million of its own shares in a privately negotiated transaction. The deal is part of an existing buyback program.
The sellers, collectively known as the Legatum Group, are affiliates of Galahad Securities. As a single entity, Legatum is the company's largest stockholder, holding just over 67 million shares -- nearly 24% of the outstanding amount. The price of the stake is roughly $25 million ($3.39 per share), which will be paid from Sonus' existing cash position.
Late last month, the company's board authorized a repurchase program for up to $100 million in common stock.
At the moment, Sonus has just under 283 million shares outstanding. Its stock currently trades at $3.50 per share.