Cadence Announces $100 Million Accelerated Share Repurchase Agreement

Rhea-AI Summary

Cadence Design Systems has announced an accelerated share repurchase (ASR) agreement with Royal Bank of Canada, aiming to buy back $100 million of its common stock. The initial delivery will include approximately 489,000 shares, with the remainder to be settled in the third quarter of 2022. The total number of shares repurchased will depend on Cadence’s daily volume-weighted average share prices during the ASR term, adjusted for a discount. This buyback is expected to enhance shareholder value and indicate confidence in Cadence's future.

Positive

• Cadence is repurchasing $100 million of its common stock, signaling confidence in future growth.
• Initial share delivery consists of approximately 489,000 shares, potentially increasing shareholder value.

Negative

• Final share count depends on market conditions, which may introduce variability in shareholder value.
• Risks associated with market price fluctuations during the repurchase period could impact total buyback amount.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced that it has entered into an accelerated share repurchase (ASR) agreement with Royal Bank of Canada to repurchase an aggregate of $100 million of Cadence common stock.

Under the ASR agreement, Cadence will receive an initial share delivery of approximately 489,000 shares, with the remainder, if any, to be settled in the third quarter of 2022 upon completion of the repurchases. The final number of shares that Cadence will repurchase under the ASR agreement will be based on Cadence’s daily volume-weighted average share prices during the term of the ASR agreement, less a discount.

About Cadence
Cadence is a pivotal leader in electronic systems design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design^™ strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world’s most innovative companies, delivering extraordinary electronic products from chips to boards to complete systems for the most dynamic market applications, including hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and healthcare. For eight years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at cadence.com.

Forward-Looking Statements
This document contains forward-looking statements, including statements regarding the timing and amount of shares repurchased under the ASR agreement. Forward-looking statements are based on current expectations and preliminary assumptions that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, including, among others: (i) the market price of Cadence common stock during the repurchase period; (ii) the ability of Royal Bank of Canada to buy or borrow shares of Cadence common stock; (iii) the impact of global and regional economic and market conditions, including illiquidity and other risks of instability in the banking and financial services industry; and (iv) corporate and regulatory requirements. For a detailed discussion of other cautionary statements related to Cadence, please refer to Cadence’s filings with the U.S. Securities and Exchange Commission, which include Cadence’s most recent reports on Form 10-K and Form 10-Q, including Cadence’s future filings.

© 2022 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

Category: Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20220621005485/en/

Cadence Investor Relations

408-944-7100

investor_relations@cadence.com

Source: Cadence Design Systems, Inc.

FAQ

What is the purpose of Cadence's $100 million share repurchase?

The share repurchase aims to enhance shareholder value and reflects Cadence's confidence in its growth prospects.

How many shares will Cadence initially repurchase under the ASR agreement?

Cadence will initially receive approximately 489,000 shares in the first delivery.

When will the final number of shares repurchased by Cadence be determined?

The final number of shares will be settled in the third quarter of 2022, based on the company's share price.

What factors could affect the number of shares Cadence repurchases?

The market price of Cadence common stock and Royal Bank of Canada's ability to buy or borrow shares will affect the total.