MediaTek sets eyes on Richtek to target PMIC space
MediaTek, a Taiwan fabless chip company, has revealed it plans to bid to buy Richtek Technology Corp., a fabless vendor of analogue and power management ICs (PMICs) also based in Hsinchu, Taiwan. MediaTek said the acquisition would give it a leadership position in PMICs and help it expand its line-up for the Internet of Things (IoT).
Initially MediaTek plans to acquire between about 35 and 51 per cent of the outstanding stock in Richtek paying $5.99 per share. This will cost MediaTek between about $310 million and $450 million. Upon completion of the tender offer, MediaTek plans to acquire 100 per cent of Richtek’s outstanding shares and complete the acquisition in 2Q16, subject to relevant regulatory approvals.