iPhone manufacturer Foxconn is buying Belkin, Linksys, and Wemo for $866 million in cash
iPhone manufacturer Foxconn Interconnect Technology Limited (FIT), commonly known as Foxconn, has has agreed to acquire accessory firm Belkin and its associated brands, Linksys, and Wemo for $866 million in cash, by way of a merger. The Taiwanese hardware manufacturer, Foxconn, is also a subsidiary of Hon Hai Precision Industry Co. The company is contracted by Apple to make its iPhones. The company announced in a joint company release with Belkin International, Inc. (Belkin®, Linksys®, Wemo®, Phyn® brands) yesterday, the signing of a definitive agreement under which FIT agreed to acquire Belkin International for approximately US$866 million in cash, creating a global consumer electronics leader.
Foxxconn is expected to further tap into premium accessories and the smart home market by leveraging Belkin’s strength in research and development capabilities and the consumer products channel. 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, 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.”
“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 Chet Pipkin, CEO and founder, Belkin International. “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 International and its family of brands will continue to operate as a subsidiary of FIT under the leadership of CEO and founder Mr. Pipkin and his executive team. Mr. Pipkin is expected to join FIT’s management team.
Founded in 1974, Foxconn manufactures electronic products for major American, Canadian, Chinese, Finnish, and Japanese companies. Notable products manufactured by Foxconn include the BlackBerry, iPad, iPhone, iPod, Kindle, Nintendo 3DS, Nokia devices, PlayStation 3, PlayStation 4, Wii U, and Xbox One. As of 2012, Foxconn factories manufactured an estimated 40% of all consumer electronics sold worldwide. Foxconn focuses on the development, manufacturing and marketing of electronic and optoelectronic connectors, antennas, acoustic components, cables and modules for applications in computers, communication equipment, consumer electronics, automobiles, industrial and green energy field products. In 2016, the company had revenue of $131.8 billion USD with1.3 million employees.
Headquartered in Playa Vista, California, Belkin makes people-inspired products that harness the power of technology to connect the dots between people and the experiences they love. Our award-winning product lines include Wi-Fi networking solutions for the home and business; mobile accessories for laptops, smartphones, tablets; home energy management, home automation and intelligent water solutions; plus, a broad range of connectivity and power products. Belkin International, Inc. is the parent organization to the Belkin, Linksys, Wemo and Phyn brands. A privately held company founded in 1983, Belkin has more than 1,400 employees with products sold in more than 50 countries around the world.