iPhone manufacturer Foxconn acquires Belkin for $866 millionLast updated on Mar 27, 2018, 12:57 pm
Taiwanese electronics manufacturer Foxconn, best known for assembling Apple iPhones, has bought the California-based Belkin International for $866 million in cash.
A subsidiary of Foxconn, Foxconn Interconnect Technology (FIT) has announced an agreement to buy Belkin International which owns brands like Belkin, Linksys, Wemo and Phyn.
The deal, which is subject to approval from the US Committee on Foreign Investment, is a major shift for Foxconn.
About the Foxconn-Belkin agreement
Foxconn will acquire Belkin International and its subsidiaries for $866 million in cash after the deal would be approved.
As part of the agreement, Belkin and its brands will be run separately from Foxconn; Belkin CEO Chet Pipkin, along with his executive team, will continue to manage Belkin International.
The agreement also notes that Belkin CEO is "expected" to join the Foxconn management.
From back-end manufacturer to the owner of three major brands
This deal comes as a major shift for Foxconn as it transcends from being a manufacturing-partner to now the owner of three major consumer brands -Belkin, Linksys and Wemo.
Foxconn can now directly reach consumers to grow its business in phone, tablet and wearable accessories through Belkin products. Further, it can venture in Wi-Fi routers and smart home products through Linksys and Wemo respectively.
For both Belkin and Foxconn
"Integrating Belkin's best-in-class capabilities and solutions into Foxconn Interconnect Technology (FIT), we expect to enrich our portfolio of premium consumer products and accelerate our penetration into the smart home," said Sidney Lu, CEO, FIT.
"We see significant synergies with FIT, including leveraging its world-class manufacturing capability to enhance Belkin's operating efficiency and competitiveness," said Chet Pipkin, CEO and founder, Belkin International.