Taiwan-based WLAN chip maker Ralink Technology and sDSL CPE chipset supplier TrendChip Technologies have announced that a merger agreement has been approved by their boards of directors.
Under the terms of this agreement, each 0.8209 share of TrendChip will be exchanged for one share of Ralink, and the merged company will keep the name of Ralink.
With a combined stock valuation of approximately NT$20 billion (US$629.76 million) and combined 2009 revenues of over NT$7.3 billion, the new Ralink will become one of the top-30 fabless semiconductor companies worldwide as ranked by IC Insights based on revenues, the companies claimed.
Management of the combined 600-person company will include executives and board members from both organizations. Ralink's board of directors has appointed Shinjou Fang, chairman of TrendChip, to be CEO of the new company, while Chris Kao will continue to serve as chairman.
Ralink's 802.11n solutions are shipping with customers in the Americas, Europe, and Asia, and are embedded in hundreds of products across all major Wi-Fi market segments, the companies said. TrendChip's solutions have been deployed by 50 carriers in 45 countries across Europe, Asia, and the Americas. TrendChip saw a 90% on-year growth in 2009, and aims to become the number-two global xDSL CPE chip supplier in 2010.
Article translated by Meiling Chen
