Wednesday, March 16, 2011

MediaTek and Ralink merge

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 MediaTek Inc.
MediaTek Inc. is a leading fabless semiconductor company for wireless communications and digital multimedia solutions. The company is a market leader and pioneer in cutting-edge SOC system solutions for wireless communications, high-definition TV, optical storage, and DVD and Blu-ray products. Founded in 1997 and listed on Taiwan Stock Exchange under the code "2454", MediaTek is headquartered in Taiwan and has sales and research subsidiaries in Mainland China, Singapore, India, U.S., Japan, Korea, Denmark, England and Dubai. For more information, please visit MediaTek’s website at .

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