Varian Medical Systems Inc., which makes software and X-ray equipment for cancer clinics and cargo screenings, said Monday that its board of directors authorized the repurchase of an additional 12 million common shares through the end of its 2012 fiscal year.
The company said the new authorization is in addition to about 4.5 million shares remaining under a prior buyback plan that expires at the end of fiscal 2011 and a new $300 million accelerated stock buyback plan.
The company currently has about 118.2 million shares of common stock outstanding.
Shares of Varian rose $2.25, or 3.3 percent, to close at $71.36. Buybacks reduce the number of shares outstanding, boosting per-share earnings and expanding the percentage size of current shareholders' stakes.