Filing Flows › Rambus (RMBS) › Takeover & LBO
Is Rambus (RMBS) a takeover target?
A leveraged buyout at today's price plus 30% ($113.42 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $113.42 | today's $87.25 plus 30% |
| × shares | 108.8 million | |
| = Equity value | $12.3B | |
| + Debt refinanced | $0 | |
| − Cash | $786M | |
| = Enterprise value | $11.6B | 38.4× EBITDA of $301M |
| Fees | $231M | 2% of the price |
| New debt | $1.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $10.1B | 86% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $860M | $325M | $127M | $125M | $1.5B |
| Year 2 | $918M | $347M | $117M | $150M | $1.4B |
| Year 3 | $968M | $366M | $106M | $174M | $1.2B |
| Year 4 | $1.0B | $382M | $92.4M | $197M | $1.0B |
| Year 5 | $1.0B | $393M | $77.3M | $218M | $793M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 28.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $11.4B | |
| − Debt left | $793M | |
| = Buyer's equity | $10.6B | |
| Money multiple | 1.04× | on $10.1B put in |
| Buyer's yearly return (IRR) | 0.9% |
Price against return
What the buyer makes at other premiums over today's $87.25.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $95.98 | 5.2% |
| 20% | $104.70 | 2.9% |
| 30% | $113.42 | 0.9% |
| 40% | $122.15 | −1.0% |
| 50% | $130.88 | −2.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $796M | |
| EBITDA, last 12 months | $301M | 37.8% of revenue |
| Depreciation and amortization | $12.2M | |
| Capital spending | $30.6M | |
| Debt | $0 | |
| Cash | $786M | |
| Share price | $87.25 | on Oct 16, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 18% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Rambus would cost about $113.42 a share, $12.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $97.72 | $10.6B |
| Median | 30% | $113.42 | $12.3B |
| High end (a quarter paid more) | 31% | $114.30 | $12.4B |
Rambus' latest quarter
Rambus, Q3 2026: revenue $218M (+22% year over year), operating margin 38.3%, net earnings $74.6M, operating cash flow $102M. The chart follows the revenue to costs, profit and cash.
Questions
Is Rambus being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Rambus?
A leveraged buyout at today's price plus 30% ($113.42 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Rambus cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Rambus would cost about $113.42 a share, $12.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.