Foxconn Interconnect Technology Limited reach an agreement on Monday to acquire Belkin International Inc. for $866 million in cash to establish itself a global consumer electronics leaders.
Foxconn will leverage Belkin’s strength in research and development and the consumer products channel to be able to further expand upon its premium accessories and the smart home market.
The merger will also bolster Belkin’s brands, which includes Linksys, Wemo and Phyn. The transaction will also support future investments in research and development to expand Foxconn’s presence in the U.S. as well as key global markets.
Belkin is a U.S. based electronic manufacturer, notably known for a range of computer and phone accessories. The company’s subsidiary, Linksys is well known for its home routers and Wemo runs a smart home system for customers.
“FIT is excited to acquire Belkin and its capabilities in the premium consumer products space,” said Sidney Lu, CEO of Foxconn. “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.”
“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.” said Chet Pipkin, CEO and founder, Belkin International.
Belkin and its subsidiaries will operate as a segment of Foxconn under its same CEO Pipkin and his executive team. Pipkin will also join Foxconn’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.” concluded Pipkin.
The Financial Times notes that the purchase should be subject to approval by the U.S. Committee on Foreign Investment, meaning that this deal may not happen.
Under the Trump administration, the Committee has blocked many acquisition and merger attempts from foreign companies, especially Chinese businesses. CFIUS notably blocked mergers between Ant Financial and MoneyGram and Broadcom’s takeover attempt of Qualcomm.