Progress' Board Approves Suspension Of Its Quarterly Dividend As Of Closing Of The ShareFile Acquisition; Plans To Redirect Such Capital Toward Debt Repayment To Increase Liquidity
Portfolio Pulse from Benzinga Newsdesk
Progress Software's board has decided to suspend its quarterly dividend following the acquisition of ShareFile. The capital previously allocated for dividends will now be redirected towards debt repayment to enhance liquidity.
September 09, 2024 | 10:11 am
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Progress Software has suspended its quarterly dividend to focus on debt repayment after acquiring ShareFile. This move aims to increase liquidity.
The suspension of dividends is typically seen as a negative signal by investors, as it indicates a shift in capital allocation priorities. In this case, Progress Software is redirecting funds to repay debt, which may be seen as a prudent financial move but could disappoint income-focused investors.
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