HSINCHU, Taiwan, March 16, 2011 - MediaTek Inc. (TSE:2454；MediaTek) has finalized its merger agreement with Ralink Technology Corporation (TSE:3534；Ralink) 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, pending shareholder approval and other regulatory reviews.
The share exchange ratio approved by the respective Boards was based on internal and external assessments of the strategic value of the proposed merger, average market capitalization analyses and consideration of relevant precedent transactions. The transaction is expected to close in Q4 of 2011.
The transaction unleashes growth opportunities driven by complementary 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 advanced technology, the acquisition of Ralink will bring an industry-leading 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."
In the growing market for wireless connectivity semiconductors, the combined company will offer its customers a world-class portfolio of Wi-Fi solutions and other market-leading networking technologies like Bluetooth, GPS, xDSL, and Ethernet. Similarly, employees and shareholders will benefit from the economies of scale and scope resulting from this exciting merger.
About About MediaTek
Since 1997, MediaTek has been a pioneering fabless semiconductor company and a market leader in cutting-edge systems-on-chip (SoC) for mobile devices, wireless networking, HDTV, DVD and Blu-ray. Our tightly-integrated, innovative chip designs help manufacturers optimize supply chains, reduce the development time of new products, and extend a competitive edge in crowded markets. Through MediaTek Labs, the company is also building a developer hub that will support device creation, application development, and services for the Internet of Things era. By building technologies that help connect individuals to the world around them, MediaTek is enabling people to expand their horizons and more easily achieve their goals. We believe anyone can achieve something amazing. And we believe they can do it every single day. We call this idea Everyday Genius and it drives everything we do. Visit mediatek.com for more information.
About Ralink Technology Corporation
Ralink Technology Corporation is a leading innovator and developer in the wireless home networking and broadband access semiconductor markets. Ralink products are recognized for their superior performance and reliability, rich feature set, low-power consumption, and high levels of integration. 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. Ralink Technology was founded in 2001 with headquarters in HsinChu, Taiwan, R&D centers in Cupertino, California and Suzhou, China, and sales offices in China, Europe, and Japan. For more information about Ralink please visit our website at www.ralinktech.com