Belkin to acquire Cisco's home networking business unit

NEW DELHI: Electronics major Belkin today said it has entered into an agreement to acquire Cisco's home networking business unit.

The company has entered into an agreement to acquire Cisco's home networking business unit, including its products, technology, Linksys brand and employees, Belkin said in a statement.

However, specific financial terms of the transaction were not disclosed.

The transaction is subject to various standard closing conditions and is expected to close in March 2013, it said.

"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.

Belkin intends to maintain the Linksys brand and will offer support for Linksys products as part of this transaction, it said.

After the transaction closes, Belkin will account for about 30 per cent of the US retail home and small business networking market, it added.

"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 US networking marketplace," Pipkin 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.