Foxconn buys Belkin with Linksys and WeMo subsidiaries for $ 866 million

By: Bohdan Chub | 27.03.2018, 15:45
Foxconn buys Belkin with Linksys and WeMo subsidiaries for $ 866 million

Foxconn has grown from a contract manufacturer and is gradually increasing its influence in the consumer segment. In this Taiwanese giant will help buy Belkin International for about $ 866 million.

Why so expensive?

Because Belkin - is not only accessories for smartphones and typewriters for quick stickers on the screen. Under the wing of the company are the manufacturer of network equipment Linksys, bought from Cisco in 2013, the developer of smart home devices Wemo and the Phyn brand, known in the US for its smart system for managing water supply and protection against leaks.

The deal should be approved by US regulators. Against the backdrop of restrictions for Chinese manufacturers and the US government-blocked purchase of Qualcomm by the Singapore Broadcom, this may not be so easy. Although it is unlikely that the Belkin business has any strategic significance.

If all the authorities grant good, after absorption, Belkin International will continue to exist as an independent company, and its current head Chet Pipkin will keep his post.

What else are rich?

In 2016, Foxconn bought a controlling stake in Sharp (66%) for $ 3.5 billion. The manufacturer also develops and manufactures Nokia smartphones , while the Finnish HMD Global is responsible for marketing and sales.

Source: Belkin