Spend 1.5 billion to acquire companies, MTK adds Internet of Things

MediaTek Broadband Communications has an active layout. It made another move on the 27th, announcing that Luoda Technology, which is responsible for the broadband business, will acquire 100% of the shares of Jiuyang Electronics at 22 yuan per share, a premium of 15.79%, which is equivalent to spending 1.507 billion yuan to strengthen the acquisition of Ethernet and Switch chip technology, layout of the industrial Internet of Things battlefield.

MediaTek has a strong intention to lay out the communication business. In December, it threw two punches. First, through its subsidiary Luoda Technology, it subscribed for 495 million yuan to subscribe for the private equity of AsiaInfo Electronics, an industrial Ethernet chip company, and became the largest single shareholder holding 20% ​​of the shares. 27 On the same day, it was announced that Luoda Technology will be the main body, and it will merge with Jiuyang Technology through share swap.

After the merger, Jiuyang will be delisted and become a subsidiary of Luoda. MediaTek said that this move will positively help the development of broadband communications. In fact, Jiuyang Electronics has the same business direction as AsiaInfo Electronics. Whether it will further increase its shareholding in AsiaInfo and strengthen its integration in the future deserves attention.

The operating scale of Jiuyang is not large. In the first 11 months, the revenue was 771 million yuan, an annual decrease of 13.4%, which was the lowest in five years. It has also turned losses this year, with a loss of 1.48 yuan in the first three quarters. In the past 10 years, only 3 years have made money.

Jiuyang is mainly engaged in the research and development, design and marketing of wired high-speed and ultra-high-speed Ethernet transceivers and switches. It has more than 70 Ethernet network patents. A team of intelligent network power supply (PoE) chip design capabilities.

 MediaTek invested 7 billion yuan in two-phase parallel network, becoming the main body of broadband communication layout

So far, Luoda Technology has become a key piece of MediaTek’s layout in the field of broadband communications, regardless of wired or wireless network technology, what kind of company is Luoda? Luoda Technology is currently in the state of public offering. The chairman is Xie Qingjiang, deputy director of MediaTek, with a capital of 605 million yuan.

The main products of Luoda are RF wireless communication chips, including power amplifier (PA) and Bluetooth SoC (BT), WiFi radio frequency chip, low noise power amplifier and digital TV tuner, among which PA products are mainly used in smart phones .

Luoda was established in 2001. In the past, it was BenQ’s semiconductor department. MediaTek Smart Eye bought more than 30% of the equity from BenQ and became the largest shareholder. Later, in 2017, MediaTek announced the public acquisition of Luoda for 110 yuan, and finally 7 billion yuan. The consideration was completely acquired, Luoda was delisted from the market, and MediaTek integrated its own Internet of Things department into Luoda Technology.

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