The deal was made for $866 million in cash.
In a move that seemingly came out of nowhere, Belkin International issued a press release announcing that it's been acquired by Foxconn – a company that's become most well-known for manufacturing Apple's iPhones.
You probably know Belkin for its wireless chargers, routers, cables, etc., but Belkin International is made up of more than just Belkin itself. This deal also means Foxconn now owns Wemo (Belkin's smart home brand), networking hardware company Linksys, and Phyn (a smart water pressure sensor).
Foxconn is purchasing Belkin International for around $866 million in cash, and with this deal, it's looking to make a big step into the world of smart home products and "premium accessories."
Speaking on behalf of Foxconn, CEO Sidney Lu said –
FIT is excited to acquire Belkin and its capabilities in the premium consumer products space. 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.
FIT is short for Foxconn Interconnect Technology, and it's a subsidiary of the main Foxconn entity. FIT currently just makes cables and a variety of computer connectors, so while its portfolio isn't the most exciting at the moment, its manufacturing prowess is expected to be a big benefit for Belkin's growth.
Belkin says it and its other brands will continue to operate like normal, with CEO and Founder Chet Pipkin commenting –
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.
What are your thoughts on this deal? Sound off in the comments below.
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