Taiwanese hardware manufacturer Foxconn on Monday announced the acquisition of accessory firm Belkin and its associated brands, Linksys, and Wemo. The deal to buy the electronics maker has a price tag of $866 million (roughly Rs. 5,624 crores) by way of a cash merger, the companies announced in a joint statement. This acquisition indicates that Foxconn, known best for manufacturing the iPhone, will soon have its own lineup of routers and other computer accessories.
The deal involves Foxconn Interconnect Technology Ltd. (FIT), which is a subsidiary of the Foxconn Technology Group that manufactures a range of electronics products for various global brands. "FIT is excited to acquire Belkin and its capabilities in the premium consumer products space," said Sidney Lu, CEO, FIT. "Integrating Belkin's best-in-class capabilities and solutions into FIT, we expect to enrich our portfolio of premium consumer products and accelerate our penetration into the smart home," he added.
Meanwhile, California-based company Belkin is a well-known brand when it comes to computer and smartphone accessories, such as routers, wireless chargers, laptop docks, and more. It had bought Linksys, known for making home routers, in the year 2013. Additionally, Belkin has a smart home system called WeMo.
This is a major move by Foxconn, as it is coming out of being a manufacturing partner to the owner of three popular consumer brands. Using Belkin's research and development capabilities, FIT expects to tap into the premium accessories and the smart home market, the company said. This would also help Belkin to grow its portfolio of brands and products by more investment in research, development, and engineering.
"We see significant synergies with FIT, including leveraging its world-class manufacturing capability to enhance Belkin's operating efficiency and competitiveness. The transaction also grants us access to more resources to invest in our people and to aggressively pursue opportunities in the marketplace," said Chet Pipkin, CEO and founder, Belkin International.