Consumer-tech industry consolidation continues this week with the announced purchase of Belkin International by Taiwanese contract manufacturing giant Foxconn.
Foxconn, whose formal appellation is Hon Hai Precision Industry Co., is best known as the folks who somewhat controversially assemble iPhones for Apple. Belkin, based in California, makes mobile accessories, home networking and home automation products under the Belkin, Linksys, Wemo and Phyn brands.
Hon Hai subsidiary Foxconn Interconnect Technology Ltd. (FIT) will pay $866 million for those badges, along with Belkin’s management team, R&D capabilities and retail reach, in an all-cash deal. A definitive agreement was signed by both parties.
The acquisition, which would follow Foxconn’s $3.5 billion majority move into Sharp two years ago, will further bring the behind-the-scenes business into the tech industry’s consumer-facing forefront, while giving it some added skin in the smart-home sector.
Belkin, in turn, will benefit from its new parent’s deep pockets, which will further fuel R&D, engineering and overseas expansion.
In a statement, Belkin founder/CEO Chet Pipkin said his company will also leverage Foxconn’s world-class manufacturing capabilities to enhance operating efficiency and competitiveness, allowing it “to take our brand portfolio … to new heights.”
In turn, FIT CEO Sidney Lu said the move will “enrich our portfolio of premium consumer products and accelerate our penetration into the smart home.”
Under the plan, Pipkin and his management team will continue to lead the Belkin, which will continue to operate as a FIT subsidiary.
Tapei-based FIT, which trades as FIT Hon Teng Ltd., develops, makes and markets electronic and optoelectronic connectors, antennas, acoustic components, cables and modules for use in computers, communication equipment, cars, CE, automobiles, and industrial and clean-energy products.