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Thursday, February 9, 2017

CTS to appoint 3 directors return $3.4 billion to shareholders

According to CNBC news After pressure from investor Elliott Management Cognizant Technology Solutions (CTS) has agreed to appoint three directors and return $3.4 billion to shareholders. Cognizant said its board has approved a plan to return $3.4 billion to shareholders over the next two years through share buybacks and dividend.

The company reported fourth-quarter revenue that narrowly missed analysts' estimates while profit beat by a cent.

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The company expects to start the repurchase of $1.5 billion worth of shares in the first quarter, initiate a cash dividend of 15 cents per share in the second quarter and repurchase $1.2 billion shares during 2017 and 2018.

Elliott had earlier urged that Cognizant should consider a $2.5 billion share buyback, acquisitions and initiate a dividend, among other measures to boost its shares.

Separately, Cognizant said fourth-quarter revenue rose about 7 percent to $3.46 billion from $3.23 billion helped by ongoing demand for its cloud services.

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