CCC Information Services Announces Charge Related to Share Repurchase
29 June 1999
CCC Information Services Announces Charge Related to Share Repurchase
CHICAGO, June 29 -- CCC Information Services Group Inc.
announced today that it has completed the repurchase of 500,000
shares of its stock from a charitable trust which had received the shares from
Mr. David Phillips, Chairman of CCC. The purchase price paid was $15 per
share, for a total consideration of $7.5 million. Mr. Phillips continues to
hold 288,000 shares plus options to acquire 115,000 shares. The purchase
price per share exceeded the average traded price during the period that the
stock was purchased by a total of $1.2 million. CCC will record a non-cash
charge for this amount in its second quarter. There will be no tax benefit
associated with this charge.
The sale by the charitable trust is related to the management transition
announced last month, whereby Githesh Ramamurthy will become the chief
executive officer effective July 1999. "The Company was offered the shares by
the trust, and the Board of Directors saw it as an excellent opportunity to
reacquire a large block of stock at what it perceived to be good value," noted
Len Ciarrocchi, the Company's Chief Financial Officer. "We continue to pursue
our share repurchase program in the market as well." To date, including
the repurchase from the charitable trust, CCC has reacquired a total of
2.4 million shares and has 600,000 remaining under its current share
repurchase authorization.
CCC Information Services Inc., headquartered in Chicago, Ill., is the
automotive claims industry's leading supplier of advanced software and
communications systems. Its value-added, technology-based products and
services increase efficiency and facilitate communication among more than
13,500 collision repair facilities, 4,400 dealerships, 350 insurance companies
and a range of business partners. For more information about CCC Information
Services, contact Peter Duckler at HLB Communications at 312-649-0371.