MediaTek has finalized its merger agreement with Ralink Technology Corporation through a share swap of 1 share for 3.15 shares of Ralink, making MediaTek as the surviving entity.
The transaction has been approved by the respective boards of directors of MediaTek and Ralink and is expected to take effect on October 1, 2011.
Ralink Technology Corporation is a developer in the wireless home networking and broadband access semiconductor markets. Ralink?s patented OptiLink technology extends Wi-Fi applications from traditional PC networking to a range of digital multimedia and handheld devices including digital cameras, printers, digital televisions, Blu-ray players, set top boxes, video game consoles and broadband access gateways.
The transaction unleashes growth opportunities driven by technologies at the platform level as well as addressable market expansion.
Commenting on the proposed merger, Mr. MK Tsai, Chairman of MediaTek said, "We expect Wi-Fi connectivity to continue increasing in popularity in the portable consumer and enterprise electronics industries, as well as the digital home. Thus, MediaTek's addressable market in game consoles, media players, tablets, and TVs will instantaneously expand with the addition of Ralink's full line of Wi-Fi chips, including fixed, portable and mobile solutions; next generation innovations in technologies like 802.11 ac/ad and VDSL; and world-class customers."
In addition to providing MediaTek with technology, the acquisition of Ralink will bring a team of engineers to the company. Ralink Chairman Mr. Chris Kao said, "MediaTek and Ralink have a long history of collaboration in digital consumer products and share a culture of technical innovation. We see great opportunities to leverage the technologies that MediaTek has successfully deployed in wireless communication devices to accelerate the proliferation of connected devices throughout home and work. Also, MediaTek's strong portfolio of products and channels in handsets, connectivity, and digital home solutions will be greatly augmented by Ralink?s wireless LAN and broadband business."