Foxconn expands beyond contract production; acquires Belkin for $866 million

Foxconn acquires Belkin for a huge sum.

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Foxconn seems to be gearing up to go against the likes of industry giants such as Apple, Google, and Amazon by expanding beyond contract production. The company has acquired Belkin, which has brands like WeMo, Phyn and, most notably, Linksys under its belt. The company shelled out $866 million as the final settlement, subject to approval from the Committee on Foreign Investment in the United States.

Foxconn expand beyond contract production; acquires Belkin for $866 mn

 

Foxconn best known for manufacturing iPhones will soon be powering some of the well-known routers and other accessories. Belkin, on the other hand, has been around 35 years and is well known for manufacturing wireless chargers, laptop docks, and smartphone cases. The company acquired Linksys back in 2013.

This will be a major shift for Foxconn, making it an owner of three major consumer brands from being a background manufacturing partner.

Leveraging Belkin's strength in research and development capabilities and the consumer products channel, Foxconn Interconnect Technology (FIT) is expected to further tap into premium accessories and the smart home market. The transaction would also fuel the growth of Belkin's portfolio of brands and products and supports further investment in research and development and engineering to expand FIT and Belkin's presence in the US and key markets globally.

"FIT is excited to acquire Belkin and its capabilities in the premium consumer products space," said Sidney Lu, CEO, FIT. "Integrating Belkin's best-in-class capabilities and solutions into the FIT, we expect to enrich our portfolio of premium consumer products and accelerate our penetration into the smart home."

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"This move will accelerate our vision of delivering technology that makes the lives of people around the world better, more convenient and more fulfilling. I am thrilled to take our brand portfolio of Belkin, Linksys, Wemo, and Phyn to new heights," said Chet Pipkin, CEO, and founder, Belkin International. "We see significant synergies with the FIT, including leveraging its world-class manufacturing capability to enhance Belkin's operating efficiency and competitiveness. The transaction also grants us access to more resources to invest in our people and to aggressively pursue opportunities in the marketplace."

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