Rambus Initiates Accelerated Share Repurchase Program

Rhea-AI Summary

Rambus Inc. (NASDAQ: RMBS) has launched an accelerated share repurchase program with Deutsche Bank AG, aimed at repurchasing approximately $50 million worth of its common stock. This initiative will initially deliver around 2.6 million shares to Rambus within a week. The total shares acquired will depend on the average stock price during the program, which is expected to last six months. This action is part of a broader strategy to enhance shareholder value and reflects Rambus' confidence in its growth prospects amid rising demand for its data solutions.

Positive

• Initiation of a $50 million accelerated share repurchase program enhances shareholder value.
• Initial delivery of 2.6 million shares indicates immediate action for stock buyback.
• The program reflects confidence in future growth based on a strong balance sheet and rising demand.

Negative

• None.

SAN JOSE, Calif., Nov. 12, 2020 /PRNewswire/ -- Rambus Inc. (NASDAQ: RMBS), a premier silicon IP and chip provider making data faster and safer, today announced it has 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 $50 million of its common stock, with an initial delivery of approximately 2.6 million shares.

"This program is part of a balanced approach to delivering long-term value to our stockholders," said Luc Seraphin, president and chief executive officer at Rambus. "Our strong balance sheet combined with the increasing demand for our solutions in data-intensive applications reinforces our confidence in the future growth of the company."

Under the accelerated share repurchase program, Rambus will pre-pay to Deutsche Bank the $50 million purchase price for its common stock and, in turn, Rambus will receive an initial delivery of approximately 2.6 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 the 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.

About Rambus Inc.

Rambus is a premier silicon IP and chip provider that makes data faster and safer. With 30 years of innovation, we continue to develop the foundational technology for all modern computing systems. Leveraging our semiconductor expertise, Rambus solutions speed performance, expand capacity and improve security for today's most demanding applications. From data center and edge to artificial intelligence and automotive, our interface and security IP, and memory interface chips enable SoC and system designers to deliver their vision of the future. 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.

Contact:

Nicole Noutsios
Rambus Investor Relations
(510) 315-1003
rambus@nmnadvisors.com

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SOURCE Rambus Inc.

FAQ

What is the purpose of Rambus' accelerated share repurchase program?

The accelerated share repurchase program is aimed at enhancing shareholder value by repurchasing $50 million worth of common stock.

How many shares will Rambus initially receive in the buyback?

Rambus will initially receive approximately 2.6 million shares as part of the program.

What is the duration of the share repurchase program initiated by Rambus?

The accelerated share repurchase program is expected to be completed within six months.

Who is administering Rambus' share repurchase program?

The program is administered in partnership with Deutsche Bank AG, which is the counterparty for the repurchase.

How does Rambus determine the total number of shares to be repurchased?

The total number of shares acquired will be determined based on the volume weighted average price during the transaction, minus an agreed discount.