Belkin announced in a statement that it is purchasing Cisco's home networking division, which includes the popular Linksys brand. Belkin's intentions are to maintain the Linksys brand going forward.
CEO of Belkin International Inc., Chet Pipkin 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 realizing that vision." All valid warranties on existing and future Linksys products will be honored by Belkin once the sale is finalized, sometime in March.
Cisco provides products and services associated with communications and information technology. Cisco now wants to direct its focus on providing services for larger businesses rather than individual consumers. Last year, for the London 2012 Games, Cisco set up a network that enabled 1,800 Wi-Fi hot spots and 80,000 data connections. Cisco provided the technology for an estimated 10 million spectators, 76,000 volunteers and 22,000 athletes to stay connected. In Cisco's 2012 Annual Report, John Chambers, CEO of Cisco Systems Inc. said, "If you think about what we did with The London 2012 Games, it's a great example of our ability to strategically partner - in this case, with the British Government, the London Organizing Committee of the Olympic and Paralympic Games, British Telecom, and broadcasters such as NBC."
Belkin is a privately owned company founded in 1983 by Chet Pipkin that specializes in electronics that support connectivity devices for consumers and businesses. The Playa Vista, California-based business sells a wide range of products including iPhone and iPod accessories, routers, USB and computer network hubs, surge protectors and network switches. Belkin and Cisco intend to work together on various projects and will develop concepts of strategic marketing, products for service providers and retail distribution. The synergy of the two company's innovation capabilities is an ideal way to expand on developing the next generation of networking technology for the home.
About forging a relationship with Cisco while taking over the Linksys brand, Chet Pipkin said, "The acquisition of Linksys and the combination of Belkin's and Linksys' expertise and innovation will position us to meet the demands of today's rapidly evolving advances in technology."
