CHENNAI: Belkin,
a California based firm, announced that it has entered into an
agreement to acquire Cisco's Home Networking Business Unit, including
its products, technology, Linksys brand and employees. With global
operations, Linksys' main office is located in Irvine, Calif.
"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," said Chet Pipkin, CEO of Belkin.
Belkin
intends to maintain the Linksys brand and will offer support for
Linksys products as part of this transaction. All valid warranties will
be honored by Belkin for current and future Linksys products. After the
transaction closes, Belkin will account for approximately 30% of the
U.S. retail home and small business networking market.
"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.
"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," Pipkin said. "Additionally, Linksys will enhance Belkin's
capabilities to meet the needs of the service provider space and small
business users."
Belkin and Cisco intend to develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market. Having access to Cisco's specialized software solutions across all of Belkin's product lines will bring a more seamless user experience for customers. Merging the innovation capabilities of Linksys and Belkin provides a powerful platform from which to develop the next generation of home networking technology.
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.
Belkin and Cisco intend to develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market. Having access to Cisco's specialized software solutions across all of Belkin's product lines will bring a more seamless user experience for customers. Merging the innovation capabilities of Linksys and Belkin provides a powerful platform from which to develop the next generation of home networking technology.
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.
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