Belkin is acquiring Cisco‘s home networking unit, the company announced today, including its products, employees, and the popular Linksys brand, which makes smart routers for home Wi-Fi access points.
“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,” said Chet Pipkin, Belkin’s CEO, in a statement.
To ensure it’s an easy transition for customers, Belkin claims it will honor valid warranties for current and future Linksys products.
When the deal closes, Belkin will account for approximately 30 percent of the U.S. retail home and small business networking market. Meanwhile, Cisco is looking to exit the consumer business market altogether, recently shuttering its Flip video camera unit.
Instead, the networking giant intends to expand in business software and professional services. The company has made a spate of acquisitions to realize this vision, and yesterday picked up Intucell for a cool $475 million.
“We are pleased about this strategic relationship with Belkin to build on Linksys’ position of strength,” said Hilton Romanski, VP Corporate Business Development at Cisco.
Back in December, Bloomberg reported that Cisco hired Barclays to find a buyer for Linksys. The hunt didn’t last long. But the company likely fetched a lower price the $500 million Cisco paid for it in 2003.
The financial terms of the deal were not disclosed.