Arista Networks, Inc.
Stock Split Frequently Asked Questions
November 2024
1. What did Arista announce?
On November 7, 2024, we announced that Arista’s Board of Directors declared a four‐for‐one forward stock split of Arista’s common stock to make Arista’s common stock more accessible to a broader base of investors.
2. How does the stock split work?
The stock split will be effected through the filing of an amendment to our Amended and Restated Certificate of Incorporation, which will result in a proportionate increase in the number of shares of our authorized common stock.
The amendment effecting the stock split will be effective at 4:30 p.m. EST on December 3, 2024. Our stockholders will receive an additional three shares of common stock for each share of Arista stock held.
Prior to market open on December 4, 2024, trading is expected to commence on a split‐adjusted basis. Below is an illustrative example of how the stock split works:
|
Pre-Stock Split |
Post‐Stock Split |
Impact |
|
Shares held
|
100 shares
|
400 shares
|
Shares are multiplied by 4 as of December 3, 2024 on 4:30 p.m. EST
|
|
Share price
|
$400 per share
|
$100 per share
|
Share price is divided by 4 and will be reflected on the NYSE as of December 4, 2024 at 4:00 a.m. EST
|
|
Total value of shares held
|
$40,000
|
$40,000
|
Total value remains equal
|
Total value of shares held $40,000 $40,000 Total value remains equal
3. Will the stock split dilute the value of my Arista common stock due to the increase in the number of shares?
No.
4. Will the stock split change my percentage ownership or voting power?
No.
5. Is stockholder approval required to complete the stock split?
No. Under current Delaware law, stockholder approval is not required to complete this stock split.
6. Is the stock split tax‐free?
The stock split is intended to qualify as a tax‐free “recapitalization” for U.S. federal income tax purposes. Provided it so qualifies, the aggregate tax basis and holding period in your shares of Arista’s common stock for U.S. federal income tax purposes will not be affected by the stock split.
If you are not a “United States person” for U.S. federal income tax purposes, you should confirm with your tax advisor on any tax consequences of the stock split to you under applicable tax laws.
7. What are the U.S. federal income tax consequences of the stock split?
Arista cannot provide tax advice. We strongly recommend that stockholders consult with their tax advisor regarding their specific situations, including any consequences of the stock split under applicable state, local or foreign tax laws.
8. How will I receive the additional shares from the stock split?
No stock certificates are being issued as a result of the stock split. The additional shares you receive as a result of the stock split will be issued through the Direct Registration System (DRS).
If you hold shares in a brokerage account, the additional shares from the stock split will be automatically deposited into that brokerage account. Please contact your broker with any questions.
If you hold shares in a registered account (also known as book‐entry form) with Arista’s transfer agent (Computershare), a DRS Transaction Statement, along with a Q&A and Terms and Conditions Sheet providing information about DRS, will be mailed to you at the address on file at Computershare. The DRS Transaction Statement is your confirmation and it will indicate the number of additional shares from the stock split you received into your Computershare account.
9. Do I need to take any action to receive the additional shares from the stock split?
No action is required by you. All brokers holding Arista common stock will adjust accounts for the stock split.
10. When will the additional shares from the stock split be available to be traded?
The additional shares from the stock split will be available to be traded at market open on December 4, 2024.
11. Who do I contact if I have more questions about the stock split?
If you hold shares in a brokerage account, please contact your broker with any questions you may have.
If you are a registered stockholder and hold shares with Arista’s transfer agent (Computershare), please call Computershare at (877) 373‐6374.
Information Regarding Forward Looking Statements:
This FAQ contains “forward-looking statements” regarding our planned forward stock split. Forward- looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from those anticipated in or implied by the forward-looking statements that could affect us that can be found in our most recent filings with the Securities and Exchange Commission including, but not limited to, our annual report on
Form 10-K and quarterly reports on Form 10-Q. You can locate these reports through our website at https://investors.arista.com/ and on the SEC’s website at https://www.sec.gov/. All forward-looking statements in this FAQ are based on information available to the company as of the date hereof and we disclaim any obligation to publicly update or revise any forward-looking statement to reflect events that occur or circumstances that exist after the date on which they were made.