Synopsys Initiates $175 Million Accelerated Share Repurchase Agreement

Rhea-AI Summary

Synopsys has announced an accelerated share repurchase (ASR) agreement with Mizuho Markets Americas LLC to repurchase $175 million of its stock. The initial delivery involves approximately 521,000 shares, with the final number determined based on the average daily volume-weighted share prices during the repurchase period. The settlement is expected to be completed on or before August 18, 2021. This initiative aims to enhance shareholder value and optimize capital structure, reflecting confidence in Synopsys' future growth potential.

Positive

• Initiating a $175 million accelerated share repurchase demonstrates commitment to enhancing shareholder value.
• Initial delivery of approximately 521,000 shares boosts market perception of SNPS.

Negative

• Market price fluctuations during the repurchase period may affect the final number of shares repurchased.
• Potential risks associated with global economic conditions could impact the execution of the ASR.

MOUNTAIN VIEW, Calif., June 24, 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 $175 million of Synopsys stock.

Under the terms of the ASR, Synopsys will receive an aggregate initial share delivery of approximately 521,000 shares, with the remainder, if any, to be settled on or before August 18, 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 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

 

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SOURCE Synopsys, Inc.

FAQ

What is the amount of the accelerated share repurchase agreement for Synopsys (SNPS)?

Synopsys has entered into an accelerated share repurchase agreement for $175 million.

How many shares will Synopsys initially receive in the ASR agreement?

Synopsys will initially receive approximately 521,000 shares under the ASR.

When is the expected settlement date for the ASR of Synopsys (SNPS)?

The settlement of the ASR is expected to be completed on or before August 18, 2021.

How does the ASR impact Synopsys' stock value?

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

What factors could affect the number of shares Synopsys repurchases in the ASR?

The final number of shares repurchased will depend on the average daily volume-weighted average share prices during the repurchase period.