SAN JOSE, Calif. - Rambus Inc . (NASDAQ:RMBS), a prominent chip and silicon IP provider, has initiated an accelerated share repurchase (ASR) program to buy back approximately $50 million of its common stock, in collaboration with the Royal Bank of Canada and its agent RBC Capital Markets, LLC.
The ASR program is a reflection of the company's strong financial position and its commitment to enhancing shareholder value, according to Luc Seraphin, president and CEO of Rambus. The move is indicative of the company's confidence in its long-term growth prospects.
Rambus will prepay the $50 million to the dealer and is set to receive an initial delivery of around 675,000 shares within the first week. The final quantity of shares repurchased will be based on the volume-weighted average price of Rambus's stock, adjusted for a discount, during the term of the transaction. Completion of the program is anticipated by the end of the first quarter of 2024.
This ASR is part of a larger share repurchase program that has been previously authorized by the company's Board of Directors.
Rambus, with over three decades of experience in the semiconductor industry, specializes in high-performance memory subsystems that address the data transfer bottlenecks in various computing systems. The company's products are designed to enhance the bandwidth, capacity, and security needed to support the growing demand for data processing and to provide improved user experiences.
The statements regarding the timing and details of the ASR program are forward-looking and subject to risks and uncertainties. These statements are based on management's current expectations and projections. The company has clarified that actual results may vary and has referred to its latest annual report for a more comprehensive understanding of potential risks.
This news is based on a press release statement from Rambus Inc. and does not include any promotional content or endorsement of the company's claims.
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