Foxconn has acquired Belkin in a $866 million deal.
Under the terms of the agreement, Belkin along with subsidiary brands Linksys, Wemo and Phyn will be controlled by Foxconn. Chet Pipkin, CEO and founder of Belkin, will remain at the head of the subsidiary and Foxconn has pledged to increase R&D spending of Belkin and grow the company’s portfolio of products.
“FIT [Foxconn International Technologies] is excited to acquire Belkin and its capabilities in the premium consumer products space,” said Sidney Lu, CEO of 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.”
He added:"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."
Part of the deal includes a $10bn factory build in Wisconsin. The thinking behind this is that the factory is being used to satisfy the Trump administration which has looked to block foreign investment in US companies. Most recently Trump blocked Broadcom’s bid to take over Qualcomm.