Belkin Completes Acquisition of Linksys as Cisco Quits the Home Market

Belkin, a global manufacturer of home networking and entertainment devices (e.g. broadband routers), has confirmed the completion of its acquisition of Linksys after Cisco decided to give up on the home networking business.

Cisco originally acquired Linksys, which has been making home routers and related networking products since 1988, all the way back in 2003 for close to $500m. The move was part of Cisco’s wider efforts to become well recognised in the consumer market.

But the effort was in vein and during 2007 Cisco confirmed that it planned to abandon the brand in favour of its own-branded products for the home market (here). Since then Linksys has slowly eroded away from the market, until Belkin opted to acquire it.

Belkin has now completed its deal to acquire Cisco’s Home Networking Business Unit, including its proven products, technology and well-known Linksys brand for an undisclosed sum (certainly a lot less than the $500m that Cisco paid).

Chet Pipkin, CEO of Belkin, said:

“Linksys has a rich heritage, a passionate customer base and a wide product line, all of which fuelled our decision to acquire the company and our plan to maintain the Linksys brand.

The Linksys portfolio will continue to exist and evolve to include even richer user experiences and network management functionality. Smart Wi-Fi is an innovative and easy way for consumers to stay connected to their home network and we look to continue investing in it by adding more features and products.”

Belkin has promised that customers and retailers will continue to see new Linksys products come to market in the near future, which will include a “premier ecosystem for mobile devices and smart homes“. Existing Linksys customers will also continue to receive support and “all valid warranties will be honoured for current and future Linksys products“.

Clearly Belkin felt that Linksys was worth another shot, although some might argue that the brand lost its place in the market a long time ago.