Belkin buys US home networking business

The agreement includes Cisco's products, technology, Linksys brand and employees. With global operations, Linksys' main office is located in Irvine, California.

"We're very excited about this announcement," said Chet Pipkin, CEO of Belkin. "Our two organisations share many core beliefs - we have similar beginnings and a passion for meeting the real needs of our customers through the strengths of an entrepreneurial culture. The company'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."

It intends to maintain the Linksys brand, will offer support for Linksys products as part of this transaction and honour all valid warranties for current and future Linksys products.

"Linksys pioneered wireless connectivity capability around the globe and has a strong brand renowned for its premium market position, the strength of its installed base and its proven dependability. Its users benefit from peace of mind in their home-networking environment. Our company has developed insight into consumer needs and the experiences, solutions and products we bring to the market, including the WeMo home automation platform, will help us to grow Linksys' market presence," Pipkin said.

"Linksys is one of the leading home networking providers and has created a market-leading suite of products and services to meet customer needs," said Hilton Romanski, VP corporate business development, Cisco. "While part of the company, the product has continuously innovated, while strengthening the brand and expanding its market leadership. As part of the company's commitment to service providers, we are pleased about this strategic relationship to build on its position of strength."

"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. It will also have access to a large installed base that will be able to upgrade its networking environment to take advantage of new technologies in the smartphone, tablet, notebook and home automation arenas," Pipkin added.

"Additionally, the product will enhance the company's capabilities to meet the needs of the service provider space and small business users."

Both companies intend to develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market. Having access to Cisco's specialised software solutions across all of Belkin's product lines will bring a seamless user experience for customers. Merging the innovation capabilities of Linksys and Belkin provides a powerful platform from which to develop the next generation of home networking technology.

Specific financial terms of the transaction are undisclosed. The transaction is subject to various standard closing conditions and is expected to close in March 2013.

Tudortech distributes Belkin in South Africa and throughout the African continent. For more information, go to www.tudortech.co.za.