Accenture Board Authorizes Trust, Share Repurchases
NEW YORK; April 17, 2002 – Accenture (NYSE: ACN) today announced that its board of directors has approved the creation of a share employee compensation trust or "SECT" that will acquire Accenture shares to be used to fund equity-based compensation for future Accenture partners.
The company currently anticipates that the trust will receive its funding from the exercise of any underwriters’ over-allotment option, or "greenshoe," in connection with the pending offering of Accenture shares. The proceeds from the exercise of the option, if exercised in full, are currently estimated to be in excess of $300 million. Accenture will advance up to $300 million to the trust, which is expected to be repaid from the exercise of the option. Accenture said that the trust will be administered by an institutional fiduciary, which will conduct share repurchases as directed by Accenture from time to time based on market conditions and other factors. The fiduciary will have authorization to commence share repurchases immediately upon formation of the trust, which is expected shortly.
These share repurchases will be in addition to Accenture’s previously announced $250 million share repurchase program, under which the company has repurchased approximately $224 million worth of its shares of common stock since August 2001.
Accenture is the world’s leading management consulting and technology services organization. Through its network of businesses approach – in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies and other capabilities – Accenture delivers innovations that help clients across all industries quickly realize their visions. With more than 75,000 people in 47 countries, the company generated net revenues of $11.44 billion for the fiscal year ended August 31, 2001. Its home page is www.accenture.com.
This press release contains forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed under the heading "Forward-Looking Statements and Certain Factors That May Affect Our Business" in the reports and other documents that we file with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed with the Securities and Exchange Commission.