Foxconn to acquire Belkin, Linksys and Wemo
iPhone manufacturer continues move out of Apple's shadow with entry into consumer electronics.
Linksys brand will come under Foxconn umbrella if buyout is approved by US.
Foxconn, better known for manufacturing iPhones, plans to acquire router and computer accessory maker Belkin.
Through its subsidiary Foxconn Interconnect Technology, the Taiwanese company will pay $866 million in cash to acquire California-based Belkin, which also owns Linksys and home automation brand Wemo.
Belkin purchased Linksys, one of the world’s best known brands in home routers, in 2013. It entered into the smart home segment through Wemo more than five years ago.
The acquisition is a major shift for Foxconn, better known as an OEM manufacturer for some of the biggest electronic brands in the world.
The purchase will be subject to approval from the US Committee on Foreign Investment. The US government has in the recent past blocked foreign acquisition of US electronic companies, so the planned purchase is far from a done deal. The Trump administration could consider the takeover nationally sensitive as it involves networking equipment.
However, Foxconn’s plan to build a $10 billion factory in Wisconsin potentially keeps it in the administration’s good books.
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