SUNNYVALE, Calif.--(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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151026006652/en/
Rambus Corporate Communications
Linda Ashmore, 408-462-8411
linda_ashmore@rambus.com
or
Rambus
Investor Relations
Nicole Noutsios, 408-462-8050
nnoutsios@rambus.com
Source: Rambus Inc.
News Provided by Acquire Media