HISNCHU, Taiwan– MediaTek announced its Board of Directors had approved a Letter of Intent (LOI) with Richtek Technology Corporation today. Per the LOI, MediaTek and/or its subsidiaries and affiliates shall launch a tender offer for Richtek common stock.
Richtek, founded in 1998, is a analog IC company. The Company is headquartered in Taiwan with additional offices in Asia, the U.S., and Europe. The company delivers power management solutions that improve the performance of consumer electronics, computers, and communications equipment.
Under the tender offer, MediaTek plans to acquire a minimum of 51,981,057 shares (approximately 35% of Richtek’s outstanding shares) to a maximum of 75,743,826 shares (approximately 51% of Richtek’s outstanding shares) for NT$195 per share.
Upon completion of the tender offer, MediaTek plans to further acquire 100% of Richtek’s outstanding shares and it is now expected to be completed at the second quarter of 2016, subject to relevant regulatory approvals.
“As a global leader with significant presence in smartphones, tablets, and the digital home, MediaTek offers tremendous growth opportunities for power management related products through the cross-platform advantage,” said Mr. Ming-Kai Tsai, MediaTek Chairman & CEO.
“Richtek is a leader in analog ICs and provides comprehensive power management solutions to satisfy various customer demand, backed by an experienced management and R&D team. We believe, through the deal, the competitive edges of both companies will be leveraged to maximize the platform synergy, strengthen MediaTek in Internet of Things segment and further enhance MediaTek’s competitiveness in the fast-changing and ever-competitive global semiconductor market.”
“MediaTek and Richtek are highly complementary in power management IP and products which creates a leadership position in this field,” said, Mr. Kenneth Tai, Richtek Chairman.
“As specifications for end products continue to upgrade, the requirements for integrated power management solutions become more complex and diversified. By leveraging MediaTek’s platform leadership, Richtek aims to further optimize power management performance on the system level to enable competitive products for customers and further expand analog IC offerings to propel the company into its next stage of growth.”
