Consumer and business networking provider Belkin recently acquired Cisco’s Home Networking Business Unit, which includes the Linksys brand. Financial terms for the deal were not disclosed, but the acquisition includes all products, technology, and employees, in addition to the brand itself.
For Linksys customers, this acquisition shouldn’t mean any major changes, at least not right away. Belkin has said that it intends to keep the brand and all of its products in tact, and will also honor any existing warranties and support for products.
Belkin’s hope is that this acquisition will give it access to a larger user base help the company better meet the needs of original equipment manufacturers (OEMs).
Belkin stated in a blog post that it intends to develop a strategic relationship with Cisco to work together on certain initiatives such as retail distribution, marketing and products for the service provider market.
Once the acquisition is completed, Belkin will account for about 30 percent of the retail home and small business networking market in the U.S. The privately held company is based in Playa Vista, California.
Cisco confirmed the acquisition in its own blog post and said that the acquisition will “create a win-win relationship in the market.”
The sale of Linksys marks Cisco’s exit from the consumer market to focus more on supplying information technology to businesses. The company shuttered its Flip video camera business in 2011 and has reportedly been searching for a buyer for the Linksys brand for the past few months.
Belkin’s current office products aimed at businesses include wired and wireless networking, infrastructure solutions, and accessories for tablets and smartphones. Linksys’ line of office products includes routers, adapters, switches and cameras.
Linksys, which was founded in 1988 and is based in Irvine, California, focused mainly on home and small business networking products. Cisco initially acquired Linksys for $500 million back in 2003.
The deal between Cisco and Belkin is expected to close within the next few months.