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UPDATED: Belkin to acquire Cisco's home networking business

UPDATED: Belkin to acquire Cisco's home networking business

Purchase includes Linksys brand

Hardware accessories vendor, Belkin, has agreed to buy Cisco’s home networking business unit, which includes the Linksys brand.

Terms of the deal, expected to close in March, were not disclosed.

Belkin plans to maintain the Linksys brand and will offer support for Linksys products as part of this deal. All valid warranties will be honoured by Belkin for current and future Linksys products.

Belkin’s ultimate goal is to be the global leader in the connected home and wireless networking space and this acquisition is an important step to realising that vision, Belkin CEO, Chet Pipkin, said in a statement.

After the deal closes, Belkin aims to solidify its number two market share position in the A/NZ retail, home and small business networking market, according to the company statement.

Belkin A/NZ head of marketing, Brendan Sparks, said it will be "business as usual" in the channel and the company will continue to push both brands, including the Linksys solution, via the channel.

Belkin already has a strong presence in the Australian market, and this acquisition will help the company further strengthen the position.

"There will be no change in the go-to market" strategy, he said, adding that in the long-term, the combined brands will help tap the legacy brand of Linksys with the innovation at Belkin, combining the "best elements" from both the businesses.

Linksys has a stronger retail presence in New Zealand and the US markets and that branding will benefit the long-term Belkin strategy to solidify its position in home networking.

Five of Linksys' A/NZ employees will continue to work with the Belkin team, he said.

Linksys pioneered wireless connectivity capability around the globe and has a strong brand, claimed Pipkin, adding Belkin’s WeMo home automation platform will help it grow Linksys’ market presence further.

”With complementary innovation and engineering strategies in the combined organisation, Belkin will be able to create new opportunities for consumers, distribution partners and resellers, and will have the strongest retail presence in the U.S. networking marketplace,” Pipkin said.

“Belkin also will have access to a large installed base that will be able to upgrade their networking environment to take advantage of new technologies in the smartphone, tablet, notebook and home automation arenas.”

Linksys will also enhance Belkin’s capabilities to meet the needs of the service provider space and small business users, he said.

Belkin and Cisco intend to develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market, according to the statement.

Having access to Cisco’s specialised software solutions across all of Belkin’s product lines will bring a more seamless user experience, and further innovation to help develop the next generation of home networking technology, the statement added.

Belkin A/NZ managing director, Ian McLean, recently told ARN that it would be making an aggressive channel play in A/NZ in a bid to capture an untapped market segment.

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