updated 07:45 pm EST, Thu January 24, 2013
Deal consolidates large percentage of US home networking market
Computer accessory manufacturer Belkin revealed on Thursday that it has entered into an agreement to purchase Cisco's home networking business unit, including the Linksys brand and all associated products. Belkin intends to maintain the Linksys brand, and will continue to support all of Cisco's products in the sector, including warranty support and replacement.
"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" said Belkin CEO Chet Pipkin. The company is working with Cisco to develop a "strategic relationship" involving the Linksys product line for the future.
After the transaction is complete, Belkin will account for 30 percent of the US home and small business market for routers. Terms of the deal have not been announced. The arrangement is subject to regulatory board approval, but is expected to be finalized in March 2013.