Taiwan-based mobile-DRAM design specialist AP Memory Technology has announced plans to acquire 50-100% of local rival Zentel Electronics, which is focused more on specialty DRAM products for consumer electronics, networking devices and PC peripherals.

AP Memory is offering to buy up to 100% of Zentel at NT$14.50 (US$0.46) per share. The price represents a premium of 15.5% over Zentel's closing price of NT$12.55 on the Taiwan Stock Exchange (TSE) on September 2.

"The deal is a win for both companies, which complement each other in terms of product offerings," said AP Memory chairman Brian Hsieh. "The merger of the two will also bring together R&D teams from both sides to explore new business opportunities in the Internet of Things (IoT) field."

AP Memory plans to obtain at least 50% of Zentel's total common share capital on the open market.at the first stage of the acquisition, and then move forward taking over the remaining shares of the company. AP Memory expects to complete the tender offer during 2017.

AP Memory posted revenues of NT$2.603 billion for 2015, up 7% from a year earlier, while Zentel's revenues fell 6.6% on year to NT$2.47 billion.