Synopsys Initiates $300 Million Accelerated Share Repurchase Agreement
Synopsys has announced an accelerated share repurchase agreement with Wells Fargo Bank to repurchase $300 million worth of its stock. This agreement will initially deliver approximately 787,000 shares, with final quantities determined based on the average stock price during the repurchase period. This move aims to enhance shareholder value by reducing the number of outstanding shares and increasing earnings per share (EPS). However, there are risks including dependence on market conditions and share pricing during the buyback.
- Initiation of a $300 million stock buyback enhances shareholder value.
- Repurchase expected to improve EPS by reducing the number of outstanding shares.
- Risks associated with market price fluctuations during the repurchase period.
- Dependence on Wells Fargo's ability to acquire shares may pose operational challenges.
MOUNTAIN VIEW, Calif., Dec. 16, 2022 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced that it has entered into an accelerated share repurchase agreement (ASR) with Wells Fargo Bank, NA to repurchase an aggregate of
Under the terms of the ASR, Synopsys will receive an aggregate initial share delivery of approximately 787,000 shares, with the remainder, if any, to be settled on or before February 10, 2023, 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 Wells Fargo Bank, NA 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' recently filed Quarterly Report on Form 10-Q. Synopsys undertakes no duty, and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.
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
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