|[January 24, 2013]
Belkin Announces Intent to Acquire Cisco's Home Networking Business Unit
PLAYA VISTA, Calif. --(Business Wire)--
Belkin, a private company based in Playa Vista, Calif., with operations
and sales in more than 100 countries, today announced that it has
entered into an agreement to acquire Cisco's (News - Alert) Home Networking Business
Unit, including its proven products, technology, well-known Linksys
brand and talented employees. With global operations, Linksys' (News - Alert) main
office is located in Irvine, Calif.
"We're very excited about this announcement," said Chet Pipkin, CEO of
Belkin. "Our two organizations share many core beliefs - we have similar
beginnings and share a passion for meeting the real needs of our
customers through the strengths of an entrepreneurial culture. Belkin's
ultimate goal is to be the global leader in the connected home and
wireless networking space and this acquisition is an important step to
realizing that vision."
Belkin intends to maintain the Linksys brand and will offer support for
Linksys products as part of this transaction. All valid warranties will
be honored by Belkin for current and future Linksys products. After the
transaction closes, Belkin will account for approximately 30 percent of
the U.S. retail home and small business networking market.
"Linksys pioneered wireless connectivity capability around the globe,
and has a strong brand renowned for its premium market position, the
strength of its installed base and its proven dependability. Linksys
users benefit from peace of mind in their home networking environment.
At Belkin we have developed great insight into consumer needs, and the
experiences, solutions and products we bring to the market, including
our WeMo home automation platform, will help us to grow Linksys' market
presence," Pipki said.
"Linksys is one of the leading home networking providers and has created
a market-leading suite of products and services to meet customer needs,"
said Hilton Romanski, VP Corporate Business Development, Cisco. "While
part of Cisco, Linksys has continuously innovated, while strengthening
the brand and expanding its market leadership. As part of Cisco's
commitment to service providers, we are pleased about this strategic
relationship with Belkin to build on Linksys' position of strength."
"With complementary innovation and engineering strategies in the
combined organization, Belkin will be able to create new opportunities
for consumers, distribution partners and resellers, and will have the
strongest retail presence in the U.S. networking marketplace. Belkin
also will have access to a large installed base that will be able to
upgrade their networking environment to take advantage of new
technologies in the smartphone, tablet, notebook and home automation
arenas," Pipkin said. "Additionally, Linksys will enhance Belkin's
capabilities to meet the needs of the service provider space and small
Belkin and Cisco intend to develop a strategic relationship on a variety
of initiatives including retail distribution, strategic marketing and
products for the service provider market. Having access to Cisco's
specialized software solutions across all of Belkin's product lines will
bring a more seamless user experience for customers. Merging the
innovation capabilities of Linksys and Belkin provides a powerful
platform from which to develop the next generation of home networking
"At Belkin, we're committed to enabling great experiences for users of
today's mobile and connected home technologies," Pipkin said. "The
acquisition of Linksys and the combination of Belkin's and Linksys'
expertise and innovation will position us to meet the demands of today's
rapidly evolving advances in technology. We look forward to honoring the
heritage of the Linksys brand and investing in the continuing evolution
of its product portfolio. Together, we will provide a powerful, simple
to use, and reliable wireless and networking platform for the markets we
Specific financial terms of the transaction are undisclosed. The
transaction is subject to various standard closing conditions and is
expected to close in March 2013.
About Belkin International, Inc.
To learn more about Belkin, visit http://www.belkin.com/aboutus/.
Like us on Facebook (News - Alert) at facebook.com/belkin,
and follow us on Twitter (News - Alert) at Twitter.com/belkin.
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