Green Dot Names Board Adviser from Harvest, Repurchases $50 Million in Stock
It was a busy day for Green Dot Corp. The payment services provider, on March 13, named Jeffrey B. Osher, managing director of Harvest Capital Strategies LLC, an “observer” and adviser to Green Dot’s board of directors, and it entered into an agreement with Bank of America Merrill Lynch to purchase $50 million of its Class A common stock as part of its stock buy-back initiative.
“With [Steve Streit’s] leadership and operational, strategic and entrepreneurial accomplishments, combined with Jeff’s experience as a long-term investor in and knowledge of our company, I am confident that we will be well-positioned to further expand Green Dot’s terrific equity performance over the past year and generate very positive future results,” said William I. Jacobs, Green Dot’s independent chairman.
The company reported in February total operating revenues of $162.8 million for the fourth quarter of 2016, a 7.9 percent increase compared with $150.9 million during the same period in 2015.
Osher commended Streit on his “successful leadership and strategic vision” and on the company’s “solid” financial performance. Osher added that he is “eager to help play a part as Green Dot continues to deliver on its mission of building a great business that creates meaningful shareholder value.” This is the first time Green Dot has appointed an adviser to the board of directors. Osher will not have an official vote on the board.
It appears any hard feelings between Green Dot and Harvest Capital is water under the bridge. The two were engaged in a proxy battle in 2016, in which Harvest Capital wanted to make changes to Green Dot’s top leadership, which included the ouster of Streit, who was chairman and CEO at the time. In the end, Streit retained his role as CEO and Jacobs was named independent director.
Green Dot’s announcement of stock repurchasing is part of its buy-back program to return capital to shareholders, according to the company. With this latest transaction, Green Dot has repurchased $150 million of its Class A common stock since September of 2015 under its previously announced $150 million repurchase authorization.