Date: 20/03/2011

MediaTek gains wireless tech strength by acquiring Ralink

MediaTek Inc. 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, pending shareholder approval and other regulatory reviews.

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."

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."

With the combined strength in the wireless and wireline areas of Wi-Fi, Bluetooth, GPS, xDSL, and Ethernet, this merged business will give solutions competing with that of Broadcom and Marvel.