Foxconn, the company best known for manufacturing Apple’s iPhones, has agreed to acquire Belkin, a consumer electronics manufacturer, along with its Linksys, Wemo and Phyn brands. The Taiwanese firm will pay around $866m (£613m) in cash for Los Angeles-based Belkin and its subsidiaries.
Belkin, and its portfolio of brands, will be picked up by Foxconn Interconnect Technology (FIT), a subsidiary of Foxconn which focuses on the development and manufacturing of cables and connectors.
According to both parties, the acquisition will be used to help FIT dive deeper into the accessories and smart home market, while growing the presence of both entities in the US and key markets around the world.
“FIT is excited to acquire Belkin and its capabilities in the premium consumer products space,” said Sidney Lu, CEO of 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.”
Belkin will continue to operate as a subsidiary of Foxconn under its CEO and founder Chet Pipkin and his executive team – with Pipkin also expected to join FIT’s management team.
“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 Pipkin. “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.”