Well known Chinese manufacturer Foxconn, has today announced they have purchased Belkin for $866 million USD.
Foxconn, or rather their parent Hon Hai Precision Industry Co., Ltd has agreed to purchase Belkin, who own the Linksys, Wemo and Phyn brands. The deal is expected to see Foxconn expand into the premium accessories and the smart home market and create a ‘global consumer electronics leader’. Foxconn and Belkin also expect to expand their presence in the U.S. and ‘other’ key markets globally.
Chet Pipkin, CEO and founder, Belkin International will continue to operate the Belkin brand, and sub-brands as a subsidiary under Foxconn. Mr Pipkin, will also be joining the Foxconn board.
Mr Pipkin said of the purchase
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. 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.
The deal is, according to Engadget, subject to regulatory approval by the Committee on Foreign Investment in the United States – the same board that put the kybosh on the proposed purchase of Qualcomm by Broadcom. We’ll see how this one goes.
