SUNNYVALE, Calif. ― March 6, 2018 ― Rambus Inc. (NASDAQ: RMBS) today announced it has initiated an accelerated share repurchase program with Citibank, N.A. to repurchase an aggregate of approximately $50 million of its common stock, with an initial delivery of approximately 3.1 million shares.
“Repurchasing Rambus shares reinforces our confidence in existing product programs and highlights our ability to continue to invest in critical technology areas while delivering shareholder value,” said Dr. Ron Black, president and chief executive officer at Rambus.
Under the accelerated share repurchase program, Rambus will pre-pay to Citibank the $50 million purchase price for its common stock and, in turn, Rambus will receive an initial delivery of approximately 3.1 million shares of its common stock from Citibank within the first week of the program. The number of shares to be purchased ultimately by Rambus will be determined based on the volume weighted average price of the common stock during the terms of the transaction, minus an agreed upon discount between the parties. The program is expected to be completed within six months. The shares of common stock will be delivered by Citibank to Rambus on the third business day following the calculation period described above.
The accelerated share repurchase program is part of the broader share repurchase program previously authorized by the Rambus Board of Directors. As of March 5, 2018, before giving effect to the transaction under the accelerated share repurchase program, there remained an outstanding authorization under the broader share repurchase program to repurchase approximately 7.4 million shares of the company’s outstanding common stock.