Foxconn, the company best known for manufacturing iPhones, has revealed plans to acquire consumer electronics vendor Belkin International for $1.1 billion (US$866 million).
Belkin is based in California and is best known for its various consumer and commercial products, including smartphone accessories, cables, switches and other peripherals. The acquisition also includes Belkin-owned brands such as router maker Linksys, home automation brand Wemo and utilities monitoring systems maker Phyn.
The acquisition, which will be carried out by subsidiary Foxconn Interconnet Technology (FIT), will see the Taiwanese manufacturer enter the consumer electronics market. The company said in a statement that it plans to further tap into the premium accessories and smarthome markets. Belkin, meanwhile, said the acquisition would help to fuel growth in its product portfolio.
Belkin will continue to operate as a subsidiary of Foxconn under founder Chet Pipkin, who will join FIT's management team.
“This move will accelerate our vision of delivering technology that makes the lives of people around the world better, more convenient and more fulfilling," said Pipkin.
"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.”
Commenting on the acquisition, GIT's chief executive Sidney Lu said: “FIT is excited to acquire Belkin and its capabilities in the premium consumer products space. 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.”