The company will offer US$5.94 for each Richtek common share. After completing the tender offer and going through relevant legal procedures, the company will move forward taking over the remaining shares of Richtek. The follow-up acquisition of Richtek shares is expected to complete in the second quarter of 2016.

Ming-Kai Tsai, MediaTek chairman and CEO said that Richtek was is a leader in analogue ICs and provides comprehensive power management solutions to satisfy various customer demand, backed by an experienced management and R&D team.

"We 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," he said.

Richtek chairman Kenneth Tai claimed the two outfits were complementary in power management IP and products which creates a leadership position in this field.

He said that by using MediaTek's platform leadership, Richtek could optimize power management performance on the system level to enable competitive products for customers and further expand analogue IC offerings to propel the company into its next stage of growth.