MediaTek announced on March 16, 2011 that the company has signed a share swap merger agreement with Ralink Technology, according to the Commercial Times of Taiwan. It is reported that the agreement has been approved by the boards of directors of MediaTek and Ralink and is scheduled to come into effect on October 1, 2011. As per the agreement, 3.15 Ralink shares will be exchanged for one MediaTek share, making MediaTek as the surviving company. The transaction is projected to be closed in the fourth quarter of 2011.