Rambus Initiates Accelerated Share Repurchase Program
October 26 2015 - 7:30PM
Business Wire
Rambus Inc. (NASDAQ:RMBS) today announced it has initiated an
accelerated share repurchase program with Citibank, N.A. to
repurchase an aggregate of approximately $100 million of its common
stock, with an initial delivery of approximately 7,812,500
shares.
“This share repurchase program showcases the confidence we have
in our strategic programs and the growth we believe they will
ultimately create,” said Dr. Ron Black, president and chief
executive officer at Rambus. “We believe this buy-back program
highlights our ability to continue the investment in critical
technology areas while delivering shareholder value.”
Under the accelerated share repurchase program, Rambus will
pre-pay to Citibank, N.A. the $100 million purchase price for
common stock and, in turn, Rambus will receive an initial delivery
of approximately 7,812,500 shares of its common stock from
Citibank, N.A. within the first week of the program. The number of
shares to be ultimately purchased by Rambus will be determined
based on the volume weighted average price of the common stock
during the terms of the transaction, minus an agreed upon discount
between the parties. The program is expected to be completed by
June 2016. The shares of common stock will be delivered by
Citibank, N.A. to Rambus on the third business day following the
calculation period described above.
The accelerated share repurchase program is part of the broader
share repurchase program previously authorized by the Rambus Board
of Directors. As of October 26, 2015, before giving effect to the
transaction under the accelerated share repurchase program, there
remained an outstanding authorization under the broader share
repurchase program to repurchase approximately 20 million shares of
the outstanding common stock.
About Rambus Inc.
Rambus creates cutting-edge semiconductor and IP products,
spanning memory and interfaces to security, smart sensors and
lighting. Our chips, customizable IP cores, architecture licenses,
tools, services, training and innovations improve the competitive
advantage of our customers. We collaborate with the industry,
partnering with leading ASIC and SoC designers, foundries, IP
developers, EDA companies and validation labs. Our products are
integrated into tens of billions of devices and systems, powering
and securing diverse applications, including Big Data, Internet of
Things (IoT), mobile, consumer and media platforms. At Rambus, we
are makers of better. For more information, visit rambus.com.
Forward-Looking Statements
This release contains forward-looking statements under the
Private Securities Litigation Reform Act of 1995 relating, among
other things, to the purchase price of shares acquired pursuant to
the accelerated share repurchase program, the timing and the
duration of prospective share purchases, the amount of cash that
may be expended in connection with such share repurchases and the
potential growth from our strategic programs. Such forward-looking
statements are based on current expectations, estimates and
projections, management’s beliefs and certain assumptions made by
the Company’s management. Actual results may differ materially.
Rambus undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date
hereof.
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version on businesswire.com: http://www.businesswire.com/news/home/20151026006652/en/
Rambus Corporate CommunicationsLinda Ashmore,
408-462-8411linda_ashmore@rambus.comorRambus Investor
RelationsNicole Noutsios, 408-462-8050nnoutsios@rambus.com
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