Mediatek is a key player in the global smartphone and tablet market and wants Richtek because of its power management semiconductors.
The chairman and CEO of Mediatek, Ming-Kai Tsai said in a prepared statement that he thinks the merger will strengthen his company in the internet of things segment and put it in a better competitive position in the global semiconductor market.
Mediatek will pay $5.94 for each share of Richtek with options to buy 51 percent and eventually take over the entire company.
That’s expected to happen in the second quarter of next year.
Richtek chairman Kenneth Tai said that the two companies have complementary products and expand its analogue integrated circuits to grow its business in the future.