Foxconn To Purchase Belkin, WeMo And Linksys Brands For $866 Million
Foxconn is most known for building numerous devices for other major electronics companies such as Apple; in fact, Foxconn is tipped to be building the majority of the rumored new MacBook Air models. Belkin is known as one of the major sellers of accessories and docking stations that work with Apple devices and accessories for other brands of gadgets. Foxconn Interconnect Technology Limited (FIT) has announced that it intends to purchase Belkin for $866 million in cash, which the company says will create a global consumer electronics leader.
"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."
Foxconn intends to take advantage of the R&D capabilities and consumer products channels that Belkin has in place to tap further into premium accessories and the smart home market. Foxconn says that the transaction will also help to power the growth of Belkin's brands and products with investments in research and development and engineering to expand Belkin's presence in the U.S. and internationally.
"This move will accelerate our vision of delivering technology that makes the lives of people around the world better, more convenient and more fulfilling. I am thrilled to take our brand portfolio of Belkin, Linksys, Wemo and Phyn to new heights," said Chet Pipkin, CEO and founder, Belkin International. "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."
Belkin will operate as a subsidiary of FIT under current Belkin CEO and founder Chet Pipkin and the current executive team. Pipkin will join the FIT management team.