Rambus (RMBS) - Get Report was rising Wednesday after the Silicon Valley chip designer said it had initiated an accelerated share repurchase program to buy back an aggregate of about $100 million of its common stock.
Shares of the San Jose, Calif. company were up 6.31% to $21.55 at last check. Shares are up 23.5% year to date.
Rambus said it will pre-pay to Deutsche Bank the $100 million purchase price for its common stock and receive an initial delivery of about 4 million shares of its common stock from Deutsche Bank within the first week of the program.
The program is expected to be completed within six months.
The accelerated share repurchase program is part of the broader 20 million share repurchase program previously authorized by the company's board in October.
"Our strong balance sheet and strategic approach to capital allocation allow us to invest organically and inorganically while continuing to deliver long-term value to our stockholders," Luc Seraphin, president and CEO, said in a statement.
Separately, Rambus affirmed its second-quarter guidance. In addition, the company said it had acquired AnalogX, which provides low power multi-standard connectivity SerDes IP solutions.
The acquisition augments the Rambus family of PCIe 5.0 and 32G Multi-protocol PHYs with SerDes technology specifically built for ultra-low power and very low latency, expanding the addressable applications and available process nodes.
Rambus also said it had acquired the digital solutions company PLDA, which it described as an industry leader in Compute Express Link (CXL) and PCI Express (PCIe) digital solutions.
Both transactions are expected to close in the third quarter. The two acquisitions will not materially impact 2021 results due to the expected timing of close and acquisition accounting. Rambus said it expects the acquisitions to be accretive in 2022.