Hon Hai Precision Industry, a major Apple contract manufacturer, will acquire Belkin, Linksys, Wemo and Phyn brands for approximately US$866 million in cash, according to a statement made by Belkin International.
Taiwan-based Hon Hai is trading as Foxconn Technology Group. Its subsidiary Foxconn Interconnect Technology Limited (FIT) has just signed a definitive agreement with Belkin International which owns the four brands.
California-based Belkin has been around for 35 years and is known for making various computer and phone accessories, including wireless chargers, laptop docks and phone cases. Belkin purchased Linksys, which is known for its home routers, in 2013. Belkin has also been running a smart home system called Wemo for more than five years.
Leveraging Belkin’s strength in research and development capabilities and the consumer products channel, FIT is expected to further tap into premium accessories and the smart home market.
The transaction would also fuel the growth of Belkin’s portfolio of brands and products and supports further investment in research and development and engineering to expand FIT and Belkin’s presence in the U.S. and key markets globally.
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.”
Chet Pipkin, CEO and founder of Belkin International said, this move will accelerate our vision of delivering technology that makes the lives of people around the world better, more convenient and more fulfilling.
“We see significant synergies with FIT, including leveraging its world-class manufacturing capability to enhance Belkin’s operating efficiency and competitiveness,” Pipkin said, adding that “The transaction also grants us access to more resources to invest in our people and to aggressively pursue opportunities in the marketplace.”
Belkin International and its family of brands will continue to operate as a subsidiary of FIT under the leadership of CEO and founder Pipkin and his executive team. Pipkin is expected to join FIT’s management team.