SMB and home networking pioneer Linksys is getting more financial firepower as it is set to be acquired by iPhone manufacturer Foxconn for $866 million in cash.
Chet Pipkin, founder and CEO of Belkin International, which owns Linksys, said the company sees "significant synergies" with Foxconn.
"[We'll] leverage its world-class manufacturing capability to enhance Belkin's operating efficiency and competitiveness," said Pipkin in a statement. "The transaction also grants us access to more resources to invest in our people and to aggressively pursue opportunities in the marketplace."
In recent years, Linksys has been upping its innovation engine and channel investment, including rolling pit a new SMB integrator partner program. Linksys' goal is to arm partners with enterprise networking technology at SMB price points.
Privately held Los Angeles-based Belkin, which owns Wemo and Phyn in addition to Linksys, develops routers for the SMB market, smartphone accessories and the smart home system WeMo. Foxconn develops and sells connectors, antennas, cables and modules for applications in computers, communication devices, consumer electronics and other industries.
Foxconn said in a release that it will leverage Belkin to better tap into the premium accessories and smart home market.
Belkin did not respond to comment by press time. Last year, Wayne Newton, director of commercial markets for Linksys, told CRN "the small-business mentality is in our blood."
"From a value proposition standpoint — performance and cost — we are the best option for small businesses and the resellers that serve them," Newton said. "We are focused on making great products and putting all the tools into the hands of resellers that they need to make them more competitive."
Belkin has more than 1,400 employees with products sold in over 50 countries. The acquisition will need to be approved by the U.S. Committee on Foreign Investment. If approved, Belkin and its business units will operate under a subsidiary of FIT.
In 2016, Foxconn acquired the fiber optics division of chip maker Avago Technologies.