LONDON Ralink Technology Corp. (Hsinchu, Taiwan), a developer of wireless chips, has announced an agreement to take over the broadband chipset supplier TrendChip Technologies Corp. (Hsinchu, Taiwan).
Formally conducted as a merger of interests the company will be called Ralink Technology Corp. with each 0.8209 share of TrendChip being exchanged for 1 share of Ralink. The new Ralink will have combined 2009 revenues of over NT$7.3 billion (about $230 million), putting it among the top 30 fabless chip companies as ranked by revenue by IC Insights, Ralink said.
Management of the combined 600 person company will include executives and board members from both organizations. To streamline the integration of the two companies Ralink has appointed Shinjou Fang, chairman of TrendChip Technologies, to be CEO of Ralink Technology and Chris Kao will continue to serve as chairman.
Details of when the deal is expected to close were not given.
TrendChip was recently cited in a law suit filed by Lantiq Deutschland GmbH (Munich, Germany) against Billion Electric Co. Ltd. (Taipei, Taiwan) alleging patent infringement (see Lantiq sues modem maker over Taiwanese chip).
Ralink, founded in 2001, operates an advanced development center in Cupertino, California and has 802.11n chips shipping with customers in the Americas, Europe, and Asia, and embedded in hundreds of products across all major Wi-Fi market segments including personal computers, broadband gateways, digital televisions, Blu-Ray players, web cameras, and IPTV set-top-boxes. TrendChip, also founded in 2001, maintains development centers in Suzhou and Nanjing China.
TrendChip, also founded in 2001, is a supplier of xDSL chips for customer premises equipment and enjoyed 90 percent growth in 2009.
"Ralink and TrendChip have worked closely over the past several years to win joint designs with common customers across the globe," said Shinjou Fang, chairman of TrendChip Technologies, in a statement issued by Ralink. "Both Ralink and TrendChip share a similar vision of the networked digital home, and both companies are executing on similar strategies to deliver industry-leading performance at disruptive price points. By merging the two companies Ralink Technology Corporation will be able to leverage our combined resources, operational efficiencies, and complementary technologies to deliver superior solutions to our customers and increased value to our shareholders."
"By combining Ralink and TrendChip into a single company, Ralink Technology Corporation will be positioned to drive the growth of high-performance yet cost-effective 'triple play' voice, video, and data services throughout the networked digital home," said Chris Kao, chairman of Ralink, in the same statement. "Broadband gateways will incorporate our DSL and Wi-Fi chipsets, and they will deliver wireless content throughout the home to personal computers, televisions, phones, and other consumer electronics devices. With our combined forces and technologies, we anticipate accelerated growth in both existing and adjacent market segments over the coming years."