Foxconn Interconnect Technology (FIT), a Taiwan-based electronics company known for manufacturing the iPhone, has struck a deal to buy Belkin International for nearly $866 million in cash under a definitive agreement. The transaction also covers the Linksys, Wemo, and Phyn brands.
The acquisition provides an opportunity for Foxconn to expand its footprint into the mobile accessories and the smart home markets, given Belkin's wide variety of products including home and enterprise Wi-Fi networking solutions, premium accessories for laptops and mobile devices, home energy management, and automation systems.
Commenting on the deal, Sidney Lu, CEO of Foxconn, said:
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, added:
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.
Belkin says in its acquisition announcement that following the transaction, the company will operate as a separate organization, though it will become Foxconn's subsidiary moving forward. Pipkin, who is expected to join Foxconn's leadership, will also continue to manage Belkin along with his executive team.