SAN JOSE, Calif., June 16, 2021 – Rambus Inc. (NASDAQ: RMBS), a provider of industry-leading chips and silicon IP making data faster and safer, today announced that it initiated an accelerated share repurchase program with Deutsche Bank AG, London Branch as counterparty, through its agent Deutsche Bank Securities Inc. (Deutsche Bank) to repurchase an aggregate of approximately $100 million of its common stock, with an initial delivery of approximately 4.0 million shares.
“This program demonstrates our confidence in the future growth of the company,” said Luc Seraphin, president and chief executive officer at Rambus.“ Our strong balance sheet and strategic approach to capital allocation allow us to invest organically and inorganically while continuing to deliver long-term value to our stockholders.”
Under the accelerated share repurchase program, Rambus will pre-pay to Deutsche Bank the $100 million purchase price for its common stock and, in turn, Rambus will receive an initial delivery of approximately 4.0 million shares of its common stock from Deutsche Bank within the first week of the program. The number of shares to be purchased ultimately by Rambus will be determined based on the volume-weighted average price of Rambus common stock during the terms of the transaction, minus an agreed upon discount between the parties. The program is expected to be completed within six months. The shares of common stock will be delivered by Deutsche Bank to Rambus on the third business day following the calculation period described above.
The accelerated share repurchase program is part of the broader 20 million share repurchase program previously authorized by the Rambus Board of Directors in October 2020.
Separately, Rambus affirmed its previously issued guidance for the fiscal quarter ending June 30, 2021, as set forth on the Current Report on Form 8-K furnished with the Securities and Exchange Commission on May 3, 2021.
