Taiwan's MediaTek Inc. has signed a letter of intent with Richtek Technology Corporation to acquire common stock of the latter.

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 NTD195 per share. On the completion of this acquisition, MediaTek plans to further acquire 100% of Richtek's outstanding shares, which is expected to be completed in the second quarter of 2016, subject to relevant regulatory approvals.

Ming-Kai Tsai, chairman and chief executive officer of MediaTek, said that Richtek is a leader in analog ICs and provides comprehensive power management solutions to satisfy various customer demands, backed by an experienced management and R&D team. They 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.

Kenneth Tai, chairman of Richtek, said that MediaTek and Richtek are highly complementary in power management intellectual properties and products. 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.