Synopsys Enters $300M Accelerated Share Buyback Deal

Synopsys Inc SNPS penned an accelerated share repurchase agreement (ASR) with Wells Fargo & Co WFC Wells Fargo Bank, NA, to buy back shares worth $300 million.

As per the term, SNPS will receive a total initial share delivery of about 569,000 shares, with the remainder, if any, to be settled by November 22, 2023, upon completion of the buyback. 

Last week, Synopsys reported Q3 FY23 earnings of $2.88 per share, which beat the analyst consensus estimate of $2.74, and sales of $1.49 billion beat the analyst consensus estimate of $1.48 billion.

Related: These Analysts Increase Their Forecasts On Synopsys After Strong Q3 Results

As of July 31, 2023, operating cash flow stood at $1.38 billion, and cash and cash equivalents were $1.69 billion. 

Also, SNPS announced the appointment of Sassine Ghazi as CEO, effective January 1, and current CEO Aart de Geus will transition to the role of executive chair. 

Price Action: SNPS shares are trading higher by 0.88% at $444.28 on the last check Thursday.