EPAM Systems has agreed to repurchase $500 million of its common stock through an accelerated share repurchase with UBS, using an existing $1.8 billion buyback authorization approved in September. The deal begins with an upfront delivery of shares, while the final amount repurchased will be determined later.
- EPAM will pay UBS $500 million, funded with cash on hand and borrowings under the company’s existing credit facility.
- UBS is expected to deliver 2,550,695 shares by November 10. EPAM values that initial delivery at $400 million, based on its November 9 closing share price.
- The final share count will generally depend on EPAM’s volume-weighted average share price during the agreement, less a discount, and may be adjusted under the deal’s terms.
- Final settlement is expected in the first quarter of 2027. UBS will choose the settlement date within an agreed window.
- At settlement, UBS may deliver more shares. In some circumstances, EPAM may instead have to return shares to UBS or pay cash, at EPAM’s election.
- The transaction uses part of the board’s $1.8 billion repurchase authorization; the announcement does not say how much of that authorization remains available after this agreement.
The initial share delivery gives effect to most of the repurchase upfront, but the final number of shares—and any possible settlement payment or return of shares—will depend on the transaction’s later calculation. Funding partly through credit-facility borrowings means the buyback will use both cash and debt.