A subsidiary of long-time Apple supplier Foxconn announced Monday its acquisition of popular accessories manufacturer Belkin , which also includes the Linksys, Phyn and Wemo brands, for around $ 866 million.
Foxconn Interconnect Technology Limited and Belkin unveiled the move in a joint statement published on Belkin's website. The acquisition is to be completed under a non-cash contract.
"FIT looks forward to taking on Belkin and its premium consumer goods capabilities," said Sidney Lu, CEO of FIT. "We will integrate Belkin's best-in-class capabilities and solutions into FIT and expect to enrich our portfolio of world-class consumer goods and accelerate our penetration into the smart home."
Belkin was founded in California about 35 years ago to designate as a quality peripheral manufacturer during the personal computing boom. Starting with a selection of accessories such as surge protectors, USB hubs and, of course, cables, Belkin used Apple's renaissance with iPod products in the early 2000s.
Currently, the company produces a range of merchandise for owners of computers, smartphones, tablets, smartwatches, and other electronics. Belkin addresses the emerging segment of connected households with its own brand, Wemo.
In 2013, Belkin entered the network hardware business with the purchase of Linksys, bringing the former Cisco unit and the manufacturer of routers, switches, and other devices to market.
Most recently, Belkin and installer Uponor teamed up in 2016 to start a new company called Phyn. The company's first product, an iPhone-connected water monitor called the Phyn Plus, was launched earlier this year at CES.
Under the agreement with Foxconn, Belkin will continue to operate as a subsidiary of FIT with CEO and founder Chet Pipkin at the helm. It is expected that Pipkin will join the FIT management team as part of the agreement.
According to the Financial Times the merger must be approved by the US Treasury Foreign Investment Committee, which has recently made an exception for the chip maker Broadcom's hostile pursuit of rival Qualcomm.
President Donald Trump overruled the acquisition of Broadcom, citing national security risks that could potentially put Foxconn on track for the purchase of Belkin, including networking technology. However, Foxconn is a major investor in the US and has announced that it will complete a $ 10 billion LCD factory in Wisconsin by 2020.