Published: March 11, 2010
Ralink and TrendChip Enter Into Merger Agreement
HSINCHU, Taiwan - (BUSINESS WIRE) - Ralink Technology Corporation (TAIEX 3534, Ralink), a leading developer
of high performance wireless solutions, and TrendChip Technologies
Corporation (TAIEX 3614, TrendChip), a leading supplier of broadband
connectivity chipsets, today announced that a merger agreement has been
approved by the Board of Directors to create a global technology leader
in the home networking and broadband access semiconductor markets. Under
the terms of this agreement, the Board of Directors from both companies
have agreed that the merged company will be called Ralink Technology
Corporation, and that each 0.8209 share of TrendChip will be exchanged
for 1 share of Ralink. With a combined stock valuation of approximately
NT$20 billion, and combined 2009 revenues of over NT$7.3 billion, the
new Ralink Technology Corporation is among the world's "Top 30" fabless
semiconductor companies as ranked by IC Insights based on revenue.
Ralink, founded in 2001, is headquartered in Hsinchu, Taiwan, and
operates an advanced development center in Cupertino, California.
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 including personal computers, broadband
gateways, digital televisions, Blu-Ray players, web cameras, and IPTV
set-top-boxes. TrendChip, also founded in 2001, is headquartered in
Hsinchu, Taiwan, and maintains development centers in Suzhou and Nanjing
China. TrendChip is among the fastest growing xDSL CPE semiconductor
suppliers in the market with over 90% growth in 2009. TrendChip's
solutions have been deployed by 50 carriers in 45 countries across
Europe, Asia, and the Americas. With its high performance yet
cost-effective xDSL solutions, TrendChip is on track to become the
number 2 global xDSL CPE chip supplier in 2010.
"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. "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 Technology. "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."
Management of the combined 600 person company will include executives
and board members from both organizations. To streamline integration of
the two companies, and to maximize operational efficiencies during the
transition period, Ralink Technology's Board of Directors has appointed
Shinjou Fang, Chairman of TrendChip Technologies, to be CEO of Ralink
Technology and Chris Kao will continue to serve as Chairman.
About Ralink Technology
Ralink Technology Corporation is a leading innovator and developer of
wireless chipset solutions. Our products are recognized for their
superior throughput, extended range, low-power consumption, and
consistent reliability. Ralink's patented Wi-Fi technology is used in
various applications including traditional PC networking, broadband
gateway connectivity, and consumer electronics applications. Ralink
Technology was founded in 2001 with headquarters in Hsinchu, Taiwan and
maintains an Advanced R&D center in Cupertino, California. For more
information about Ralink please visit our website at www.ralinktech.com
About TrendChip Technologies
TrendChip Technologies Corporation is a leading supplier of broadband
access chipsets. The company's cost-effective ADSL chipsets and software
deliver industry-leading performance that has been widely adopted by
world-class telecommunications customers across the globe. Worldwide
product shipments have grown steadily since the company was founded in
2001, and grew by more than 90 percent in 2009 enabling the company to
achieve more that 25% global market share in 2009. For more information
about Trendchip, please visit our website at www.trendchip.com.tw
Ralink Technology Corporation
Joe Volat, 408-725-8070
jvolat@ralinktech.com
Bo
Chen, CFO, +886-3-560-0868
ir@ralinktech.com.tw
or
TrendChip
Technologies Corporation
Alexandra Fan, Finance Senior Manager,
+886-3-666-8066
alexandra_fan@trendchip.com.tw
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