Belkin Is Acquiring Linksys From Cisco

Belkin announced this week that they will be acquiring Linksys from Cisco’s Home Networking Business Unit.  The acquisition will include Linksys’ products, technology, employees, and Linksys brand.  Belkin intends to maintain the Linksys brand and will give support for Linksys products.  The financial details about the acquisition were undisclosed.  Belkin said that they will be honoring all valid warranties for current and future Linksys products.  Belkin will account for 30% of U.S. retail home and small business networking following the transaction.

Linksys has been developing home and small office networking products since back in 1988.  Cisco acquired Linksys in 2003 for $500 million and rebranded all of Linksys’ products.  Cisco has been wanting to sell Linksys for months though.

Belkin CEO Chet Pipkin gave the following statement about the acquisition:

We’re very excited about this announcement. Our two organizations share many core beliefs – we have similar beginnings and share a passion for meeting the real needs of our customers through the strengths of an entrepreneurial culture. Belkin’s ultimate goal is to be the global leader in the connected home and wireless networking space and this acquisition is an important step to realizing that vision.

Linksys pioneered wireless connectivity capability around the globe, and has a strong brand renowned for its premium market position, the strength of its installed base and its proven dependability. Linksys users benefit from peace of mind in their home networking environment. At Belkin we have developed great insight into consumer needs, and the experiences, solutions and products we bring to the market, including our WeMo home automation platform, will help us to grow Linksys’ market presence.

With complementary innovation and engineering strategies in the combined organization, Belkin will be able to create new opportunities for consumers, distribution partners and resellers, and will have the strongest retail presence in the U.S. networking marketplace. Belkin also will have access to a large installed base that will be able to upgrade their networking environment to take advantage of new technologies in the smartphone, tablet, notebook and home automation arenas. Additionally, Linksys will enhance Belkin’s capabilities to meet the needs of the service provider space and small business users.

At Belkin, we’re committed to enabling great experiences for users of today’s mobile and connected home technologies. The acquisition of Linksys and the combination of Belkin’s and Linksys’ expertise and innovation will position us to meet the demands of today’s rapidly evolving advances in technology. We look forward to honoring the heritage of the Linksys brand and investing in the continuing evolution of its product portfolio. Together, we will provide a powerful, simple to use, and reliable wireless and networking platform for the markets we serve.

[Source: TNW]

 

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