Belkin has entered into an agreement to acquire Cisco’s Home Networking Business Unit, taking on products, technology, the Linksys brand and employees.
“We’re very excited about this announcement,” says Chet Pipkin, CEO of Belkin.
“Our two organisations 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 realising that vision.”
Belkin intends to maintain the Linksys brand and will offer support for Linksys products as part of this transaction. All valid warranties will be honoured by Belkin for current and future Linksys products. After the transaction closes, Belkin will account for approximately 30% of the US retail home and small business networking market.
“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,” Pipkin says.
“Linksys is one of the leading home networking providers and has created a market-leading suite of products and services to meet customer needs,” says Hilton Romanski, VP: corporate business development at Cisco.
“While part of Cisco, Linksys has continuously innovated, while strengthening the brand and expanding its market leadership. As part of Cisco’s commitment to service providers, we are pleased about this strategic relationship with Belkin to build on Linksys’ position of strength.”
Specific financial terms of the transaction are undisclosed. The transaction is subject to various standard closing conditions and is expected to close in March 2013.