InterDigital, Inc. Announces Preliminary Results of Tender Offer

Rhea-AI Summary

InterDigital announced preliminary results from its Dutch auction tender offer to buy back up to $200 million of its common stock. The offer expired on February 17, 2023, with 2,739,726 shares tendered at a price of $73.00 per share. This amount represents about 9.2% of shares outstanding. The company aims to return capital to stockholders while maintaining a strong cash position. Following the offer, the preliminary proration factor is approximately 95.07%. The tender offer reflects a modified price range initially set at $60.00 to $69.00, later adjusted to $65.25 to $75.00.

Positive

• InterDigital plans to repurchase approximately 2,739,726 shares, reflecting a commitment to return capital to stockholders.
• The tender offer demonstrates strong demand with a 95.07% proration factor indicating investor interest.

Negative

• None.

WILMINGTON, Del., Feb. 21, 2023 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC) (“InterDigital” or the “Company”) announced today the preliminary results of its modified “Dutch auction” tender offer to purchase up to $200 million of its common stock for cash at a price per share not less than $65.25 and not greater than $75.00, which expired at 11:59 p.m., New York City time, on February 17, 2023.

Based on the preliminary count by American Stock Transfer & Trust Company, LLC, the depositary for the tender offer, a total of 2,739,726 shares of InterDigital’s common stock, $0.01 par value per share, were properly tendered and not properly withdrawn at or below the purchase price of $73.00 per share, including 633,565 shares that were tendered by notice of guaranteed delivery.

In accordance with the terms and conditions of the tender offer, and based on the preliminary count by the depositary, the Company expects to acquire 2,739,726 shares of its common stock at a price of $73.00 per share, for an aggregate cost of approximately $200 million, excluding fees, expenses and excise tax relating to the tender offer. The 2,739,726 shares that the Company expects to accept for purchase represent approximately 9.2% of the Company’s shares outstanding as of February 17, 2023. As such, the Company has been informed by the depositary that the preliminary proration factor for the tender offer is approximately 95.07%.

“We believe that the tender offer demonstrates our commitment to returning capital to our stockholders, as well as an opportunity for our stockholders to obtain liquidity in part or all of their shares of our common stock,” said Liren Chen, President and CEO of the Company. “With a substantial cash balance and $200 million remaining under our recently increased share repurchase authorization, we believe that we remain well-positioned to continue to return capital to our stockholders following the completion of the tender offer.”

The tender offer was announced by the Company on January 23, 2023 with a price range of $60.00 to $69.00, and was amended on February 6, 2023 to reflect an increased price range of $65.25 to $75.00.

The number of shares to be purchased and the purchase price are preliminary and subject to change. The preliminary information contained in this press release is subject to confirmation by the depositary and is based on the assumption that all shares tendered through notice of guaranteed delivery will be delivered within the two trading day settlement period. The final number of shares to be purchased and the final purchase price will be announced following the expiration of the guaranteed delivery period and completion by the depositary of the confirmation process. Payment for the shares accepted for purchase under the tender offer, and return of all other shares tendered and not purchased, will occur promptly thereafter.

The Company may, in the future, decide to purchase additional shares of our common stock (or shares of securities convertible into or exercisable for shares of our common stock) in the open market subject to market conditions and private transactions, tender offers or otherwise subject to applicable law. Any such purchases may be on the same terms as, or on terms that are more or less favorable to stockholders than, the terms of the tender offer. Whether the Company makes additional repurchases in the future will depend on many factors, including but not limited to the Company’s business and financial performance and situation, the business and market conditions at the time, including the price of shares of the Company’s common stock, and such other factors as the Company may consider relevant.

Certain Information Regarding the Tender Offer

The information in this press release describing the tender offer is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell shares of common stock in the tender offer. The tender offer was made only pursuant to the Offer to Purchase and the related materials that the Company filed with the SEC, as amended or supplemented. Stockholders who have questions or would like additional information about the tender offer may contact the information agent for the tender offer, D.F. King & Co., Inc., toll-free at (800) 549-6864.

About InterDigital^®

InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on Nasdaq.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit: www.interdigital.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “could,” “may,” “will,” “should,” “seeks,” “likely,” “intends,” “plans,” “pro forma,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described, including the return of any capital to stockholders, will happen as described (or that they will happen at all). Investors are cautioned that such statements are predictions and that actual events or results may differ materially. InterDigital’s expected financial results or other plans are subject to a number of risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and the forward-looking statement disclosure contained in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 15, 2023. Forward-looking statements speak only as of the date made.

 

CONTACT:	InterDigital, Inc.:
	investor.relations@interdigital.com
	+1 (302) 300-1857

FAQ

What are the preliminary results of InterDigital's tender offer announced on February 21, 2023?

InterDigital's tender offer resulted in 2,739,726 shares tendered at a price of $73.00 per share, totaling approximately $200 million.

When did InterDigital's tender offer expire?

The tender offer expired on February 17, 2023.

What percentage of shares outstanding does the tendered amount represent for InterDigital?

The tendered amount represents about 9.2% of InterDigital's shares outstanding.

What was the proration factor for InterDigital's tender offer?

The preliminary proration factor for the tender offer is approximately 95.07%.

What was the initial price range for InterDigital's tender offer?

The initial price range for the tender offer was set between $60.00 and $69.00 before being modified.