Rambus Inc. (NASDAQ: RMBS), a leading provider of chip and silicon IP solutions aimed at enhancing data speed and security, announced today the initiation of an accelerated share repurchase program. This strategic move involves a collaboration with Royal Bank of Canada, facilitated by RBC Capital Markets, LLC, with the objective of repurchasing approximately $100 million worth of Rambus’ common stock.
Luc Seraphin, Rambus’ President and CEO, underscored the significance of this program as a testament to the company’s forward-looking capital allocation strategy. “This program is part of our strategic approach to capital allocation and demonstrates our confidence in the long-term growth of the company,” Seraphin stated. He further emphasized the company’s commitment to delivering consistent value to its stockholders, citing Rambus’ robust balance sheet and strong cash generation.
The mechanism of the accelerated share repurchase program involves an upfront payment of $100 million by Rambus to Royal Bank of Canada, which will, in turn, facilitate an initial delivery of approximately 1.6 million shares of Rambus’ common stock within the first week of the program’s commencement. The final tally of repurchased shares will be determined based on the volume-weighted average price of Rambus’ common stock during the transaction period, subject to a negotiated discount. The anticipated timeline for the completion of the program is set for the conclusion of the third quarter of 2023.
It’s important to note that the accelerated share repurchase program aligns with the overarching share repurchase program that has previously received the authorization of the Rambus Board of Directors. This latest initiative underscores Rambus’ ongoing commitment to optimizing shareholder value and reinforces the company’s financial stability.
