InfoSpace Announces Plan to Return $200 Million to Shareholders Through Special Cash Dividend
InfoSpace, Inc. (NASDAQ: INSP) today announced that its Board of Directors has unanimously approved a special one-time cash distribution of approximately $6.30 per share. The special distribution is expected to be paid within the next thirty days. The aggregate total dividend is approximately $200 million based on the total number of shares outstanding at the close of trading on March 30, 2007, which was approximately 31.5 million shares.
The decision to establish a special cash distribution follows a thorough review of InfoSpace's capital allocation opportunities, as previously authorized by the Board on February 15, 2007. Among the factors under consideration as part of this review were the appropriate amount of funds to return to shareholders, the most efficient methodology for the distribution, the tax consequences as a result of its net-operating loss carry-forwards (NOLs), as well as the investments needed to support InfoSpace's continued growth.
"This cash distribution reflects our commitment to enhancing shareholder value and our confidence in the strength of InfoSpace's cash flows," said Jim Voelker, Chairman and Chief Executive Officer of InfoSpace. "In addition to providing for a return of capital to shareholders and protecting the value of the Company's NOLs, this capital allocation program has been carefully structured to ensure that we maintain the financial flexibility necessary to support InfoSpace's continued innovation and value creation. We look forward to realizing the growth opportunities ahead."
Credit Suisse is acting as financial advisor to InfoSpace.
At March 31, 2007, InfoSpace's cash, cash equivalents, and marketable investments totaled approximately $412.9 million. The Company has no debt obligations.
