MediaTek has disclosed plans to acquire an up to 51% stake in Richtek Technology, and is ultimately looking to buy 100% of the fellow Taiwan-based fabless IC firm.

MediaTek indicated a unit under the group will purchase 35-51% of Richtek's total common share capital, based on 51.98-75.74 million common shares outstanding, on the open market. MediaTek will offer NT$195 (US$5.94) per common share of Richtek.

MediaTek added that 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, MediaTek said.

"As a global leader with significant presence in smartphones, tablets, and the digital home, MediaTek offers tremendous growth opportunities for power management related products through the cross-platform advantage," said Ming-Kai Tsai, MediaTek chairman and CEO, in a statement. "Richtek is a leader in analog 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."

Also in the same statement, Richtek chairman Kenneth Tai indicated "MediaTek and Richtek are highly complementary in power management IP and products which creates a leadership position in this field." "By leveraging MediaTek's platform leadership, Richtek aims to further optimize power management performance on the system level to enable competitive products for customers and further expand analog IC offerings to propel the company into its next stage of growth," Tai continued.