Rambus Inc has agreed to let Toshiba Corp license its memory chip controller patents another five years, renewing an existing pact and sending Rambus' shares soaring.
Rambus shares surged 6 percent to $19.92 in after-hours trading from a regular-session close of $18.77 on the Nasdaq.
Rambus will receive royalty payments based on Toshiba's shipments of a plethora of memory chips that license its technology patents, Rambus said in a statement on Tuesday.
The Japanese company was one of Rambus' first licensees.
(Reporting by Edwin Chan; editing by Andre Grenon)