Hon Hai Precision Industry's Foxconn Interconnect Technology (FIT) subsidiary has announced a deal to slurp Belkin International for US$866 million in cash.
As well as Belkin's range of own-branded network, cable, cases, wireless networking, and other accessories, the acquisition will also bring the Wemo home automation, Linksys SOHO network, and Phyn “smart home water” brands under Foxconn's umbrella.
Foxconn promises to throw its weight behind further R&D to “expand FIT and Belkin’s presence in the US and key markets globally.”
Foxconn spins out a slice of itself to fund cloud, IoT and 5G pushREAD MORE
In Foxconn's statement, Belkin's founder and CEO Chet Pipkin is quoted as saying the transaction means the company can leverage FIT's “world-class manufacturing capability to enhance Belkin’s operating efficiency and competitiveness”.
It's no secret that while manufacturing Apple iPhones under contract is Foxconn's most prominent operation, the company wants to add more strings to its bow.
In February, Foxconn announced a transaction to spin out part of its Foxconn Industrial Internet division for a hoped-for $4bn as a diversification investment fund for new projects.
Its other investment plans cover data centres, cloud computing, 5G and internet of things products, artificial intelligence and intelligent manufacturing. ®