BOCA RATON, Fla. (AP) -- Home security company ADT is buying back $450.7 million worth of common stock from Corvex Management as the investment firm's founder leaves its board.
The company announced Monday that it will buy back 10.24 million shares of its common stock from Corvex for $44.01 per share, which is what its stock closed at on Friday. The Boca Raton, Fla. company's stock declined $2.95, or 6.7 percent, to $41.05 in midday trading Monday.
Corvex founder and managing partner Keith Meister is resigning from ADT's board, effective immediately. Corvex is ADT's third-largest shareholder, according to FactSet, with a 5.3 percent stake.
"We initially invested in ADT because of its leading market position and its potential for creating long-term shareholder value. The board and management have achieved admirable results over the past year. ADT is now on a path to achieving its optimal capital structure and implementing a capital allocation plan that will benefit shareholders in the long run," Meister said in a statement.
Last week ADT reported that its fiscal fourth-quarter net income edged up 2 percent as the average revenue per customer increased. ADT was spun of from Tyco International Ltd. last year.
ADT also said Monday that earlier this month it agreed to buy back $400 million of its stock from JPMorgan Chase through an accelerated share repurchase program.
ADT said it anticipates completing its three-year, $2 billion repurchase program in the first half of 2014.
Buying back stock reduces a company's outstanding shares, which can boost earnings per share.