Cisco Systems to sell home networking business to Belkin International
25 January 2013
Two days after it agreed to buy Israeli software maker Intucell, Cisco Systems Inc yesterday said that it would sell its home networking business, including the Linksys router brand, to privately-held Belkin International Inc.
Neither Cisco nor Belkin disclosed the financial terms of the deal, which is expected to close in March.
Los Angeles, California-based Belkin, a manufacturer of connectivity devices, intends to maintain the Linksys brand, as well as honour warranties on current and future Linksys products. The company said that post acquisition, it will account for about 30 per cent of the US retail home and small-business networking market.
''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 at Cisco.
''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,'' said Chet Pipkin, CEO of Belkin.
Earlier this month, the San Jose, California-based company said that it would close its Umi online video-conferencing service.