Synopsys Initiates $100 Million Accelerated Share Repurchase Agreement

Rhea-AI Summary

Synopsys (Nasdaq: SNPS) announced an accelerated share repurchase (ASR) agreement with Mizuho Markets Americas LLC to repurchase $100 million of its stock. This initiative involves an initial delivery of approximately 315,000 shares, with the final number of shares repurchased depending on the average daily volume-weighted share prices during the repurchase period, scheduled for completion by May 14, 2021. The company aims to enhance shareholder value through this buyback program.

Positive

• Initiating a $100 million share repurchase increases shareholder value.
• Expected delivery of approximately 315,000 shares indicates strong market confidence.

Negative

• The repurchase may depend on fluctuating market prices, posing uncertainty.
• Potential volatility and risks in the banking and financial services industry could impact the ASR's execution.

MOUNTAIN VIEW, Calif., April 5, 2021 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced that it has entered into an accelerated share repurchase agreement (ASR) with Mizuho Markets Americas LLC to repurchase an aggregate of $100 million of Synopsys stock.

Under the terms of the ASR, Synopsys will receive an aggregate initial share delivery of approximately 315,000 shares, with the remainder, if any, to be settled on or before May 14, 2021, upon completion of the repurchases. The specific number of shares that Synopsys ultimately repurchases under the ASR will be based on the average of Synopsys' daily volume-weighted average share prices during the repurchase period, less a discount.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry's broadest portfolio of application security testing tools and services. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products. Learn more at www.synopsys.com.     

Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, statements regarding the expected settlement of the ASR. Forward-looking statements are subject to both known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, among others: the market price of Synopsys common stock during the repurchase period; the ability of Mizuho Markets Americas LLC to buy or borrow shares of Synopsys common stock; and the impact of global and regional economic and market conditions, including illiquidity and other risks of instability in the banking and financial services industry. Other risks and uncertainties that may apply are set forth in the Risk Factors section of Synopsys' most recently filed Quarterly Report on Form 10-Q. Synopsys assumes no obligation to update any forward-looking statement contained in this press release.

INVESTOR CONTACT:
Lisa L. Ewbank
Synopsys, Inc.
650-584-1901
Synopsys-ir@synopsys.com  

EDITORIAL CONTACT:
Simone Souza
Synopsys, Inc.
650-584-6454
simone@synopsys.com 

View original content:http://www.prnewswire.com/news-releases/synopsys-initiates-100-million-accelerated-share-repurchase-agreement-301261777.html

SOURCE Synopsys, Inc.

FAQ

What is the purpose of Synopsys' $100 million accelerated share repurchase?

The ASR aims to enhance shareholder value by reducing the number of shares outstanding.

How many shares will Synopsys repurchase in the ASR?

Initially, Synopsys will receive approximately 315,000 shares, with the final number dependent on share price performance during the repurchase period.

When is the expected settlement date for Synopsys' ASR?

The ASR is expected to complete by May 14, 2021.

What risks could affect the execution of Synopsys' share repurchase?

Risks include market price fluctuations of Synopsys shares and instability in the banking and financial services sectors.

How does the ASR impact Synopsys' stock price?

Share buybacks can lead to an increase in stock price by reducing the number of shares available in the market, thus potentially increasing EPS.