Rambus Initiates Accelerated Share Repurchase Program

Rhea-AI Summary

Rambus announced a $100 million accelerated share repurchase program with Wells Fargo Bank, aimed at enhancing shareholder value. Initial delivery will consist of approximately 3.1 million shares. This strategic move reflects Rambus' confidence in its growth potential and commitment to long-term investments in critical technologies. The repurchase program is part of a broader initiative previously authorized by the Board of Directors, with completion expected within four months.

Positive

• Initiation of a $100 million accelerated share repurchase program.
• Initial delivery of approximately 3.1 million shares reflects strong confidence in company growth.
• Supports long-term value delivery to stockholders.

Negative

• None.

SAN JOSE, Calif.--(BUSINESS WIRE)-- 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 Wells Fargo Bank, National Association (“Wells Fargo Bank”), to repurchase an aggregate of approximately $100 million of its common stock, with an initial delivery of approximately 3.1 million shares.

“As part of our strategic approach to capital allocation, this program demonstrates our confidence in the future growth of the company, and highlights our continuing ability to invest in critical products and technologies while delivering long-term value to our stockholders,” said Luc Seraphin, president and chief executive officer at Rambus.

Under the accelerated share repurchase program, Rambus will pre-pay to Wells Fargo Bank the $100 million purchase price for its common stock and, in turn, Rambus will receive an initial delivery of approximately 3.1 million shares of its common stock from Wells Fargo 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 four months.

The accelerated share repurchase program is part of the broader share repurchase program previously authorized by the Rambus Board of Directors.

About Rambus Inc.

Rambus is a provider of industry-leading chips and silicon IP making data faster and safer. With over 30 years of advanced semiconductor experience, we are a pioneer in high-performance memory subsystems that solve the bottleneck between memory and processing for data-intensive systems. Whether in the cloud, at the edge or in your hand, real-time and immersive applications depend on data throughput and integrity. Rambus products and innovations deliver the increased bandwidth, capacity and security required to meet the world’s data needs and drive ever-greater end-user experiences. 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 terms of Rambus’ accelerated share repurchase program, including timing, Rambus’ growth potential, and the long-term success of Rambus’ investment strategy. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by Rambus’ management. Actual results may differ materially. The forward-looking statements contained in this press release are subject to risks and uncertainties, including those more fully described in Rambus’ Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022. The forward-looking statements in this press release are based on information available to Rambus as of the date hereof, and Rambus undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220912005288/en/

Nicole Noutsios

Rambus Investor Relations

(510) 315-1003

rambus@nmnadvisors.com

Source: Rambus Inc.

FAQ

What is the purpose of Rambus' $100 million share repurchase program?

The program is designed to enhance shareholder value and reflects confidence in the company's future growth.

How many shares will Rambus initially repurchase in this program?

Rambus will initially receive approximately 3.1 million shares.

When is the expected completion date for the share repurchase program?

The program is expected to be completed within four months.

Who is managing the share repurchase program for Rambus?

The program is being managed by Wells Fargo Bank.