Enghouse Systems Limited

Enghouse Systems Limited

October 26, 2009 12:25 ET

Enghouse Announces Automatic Share Purchase Plan in Connection with Normal Course Issuer Bid

MARKHAM, ONTARIO--(Marketwire - Oct. 26, 2009) - Enghouse Systems Limited ("Enghouse" or the "Company") (TSX:ESL) announced today it has entered into an automatic share purchase plan with a broker in order to facilitate repurchases of its common shares under its previously announced normal course issuer bid ("NCIB").

On April 9, 2009, Enghouse announced it had received approval from the Toronto Stock Exchange ("TSX") to make an NCIB to purchase up to a maximum of 1,655,470 common shares, representing approximately 10% of the publicly listed float. The NCIB commenced on April 14, 2009 and will terminate on April 13, 2010, or such earlier date as the Company may complete repurchases under the bid.

Under the Company's automatic share purchase plan, the Company's broker may repurchase shares under the NCIB at times when the Company would ordinarily not be permitted to, due to self-imposed blackout periods. Enghouse anticipates renewing the plan from time to time during the course of its NCIB to enable purchases of its common shares to be made during internal blackout periods. Purchases will be made by the Company's broker based upon the parameters prescribed by the TSX and applicable Canadian securities laws and the terms of the parties' written agreement. The automatic share purchase plan has been approved by the TSX and will be implemented effective as of October 27, 2009.

A total of 947,824 common shares were repurchased for cancellation under the Company's previous NCIB, which expired on April 13, 2009. To date a total of 56,738 common shares have been repurchased for cancellation under the Company's current bid.

Enghouse is engaging in an NCIB because it believes that, from time to time, the market price of its common shares may not fully reflect the underlying value of its business and its future business prospects. As a result, depending upon future price movements and other factors, Enghouse believes its outstanding common shares may represent an attractive investment, since a portion of Enghouse' excess cash can be invested for an attractive risk-adjusted return on capital through its NCIB.

About Enghouse Systems Limited

Enghouse Systems Limited is a leading global provider of enterprise software solutions serving a variety of vertical markets. Its strategy is to build a large diverse enterprise software company through strategic acquisitions and managed growth. Enghouse shares are listed on the Toronto Stock Exchange under the symbol "ESL". Further information about Enghouse may be obtained from its website at www.enghouse.com.

Contact Information

  • Enghouse Systems Limited
    Stephen Sadler
    Chairman & CEO
    (905) 946-3200