A company that was previously known only for their behind-the-scenes manufacturing of iPhones suddenly owns three big consumer brands. Chinese company Foxconn Interconnect Technology, a subsidiary of the aforementioned iPhone maker Foxconn has announced that they are acquiring computer and phone accessory giant Belkin, meaning they also get two other brands: Linksys and Wemo. The deal will reportedly cost around $866 million in cash, although it is of course subject to the approval of the US Committee on Foreign Investment.
Belkin has been known for creating various tech accessories like wireless chargers, laptop docks, phone cases and power banks among others. They bought home router manufacturer Linksys back in 2013 and around the same time, they have been running smart home system brand Wemo. There are no details yet as to what will happen with the brands, but Belkin expects to accelerate their vision to make people’s lives “better, more convenient, and more fulfilling” through their products. So this may mean that they’ll continue on as before given their strong brand.
Given the US government’s fraught relations with China, this deal may not see the light of day. And since it also involves networking equipment, there is a big possibility that it will be shut down, like many high profile foreign acquisitions the past year or so. But Foxconn is trying to sweeten the deal by promising to build a $10 billion factory in Wisconsin.
Either way, it will be interesting to see what will happen to the brands if the deal pushes through and if there will be any changes (aside from the cash flow) that will happen to Belkin, Linksys, and Wemo when the deal is finalized.
SOURCE: Belkin
