Rambus Inc. (NASDAQ: RMBS) has announced the initiation of an accelerated share repurchase program, signaling a commitment to increasing stockholder value. The company will be repurchasing an aggregate of approximately $50 million of its common stock through this program.
Under the accelerated share repurchase program, Rambus will pre-pay $50 million to the dealer and receive an initial delivery of approximately 675,000 shares of its common stock within the first week of the program. The final number of shares to be repurchased will be determined based on the volume-weighted average price of Rambus common stock during the terms of the transaction, less a discount. The program is expected to be completed by the end of the first quarter of 2024, and it is part of the broader share repurchase program previously authorized by the Rambus board of directors.
This move reflects the strength of Rambus' balance sheet and cash generation, indicating the company's confidence in its long-term growth. Luc Seraphin, President and Chief Executive Officer at Rambus, highlighted the company's ongoing capital allocation strategy and commitment to increasing stockholder value.
Rambus, a premier chip and silicon IP provider, has over 30 years of advanced semiconductor experience. The company is a pioneer in high-performance memory subsystems that solve the bottleneck between memory and processing for data-intensive systems.
Following these announcements, the company's shares moved 8.6%, and are now trading at a price of $64.31. For more information, read the company's full 8-K submission here.
