A subsidiary of Taiwanese consumer electronics firm Hon Hai Precision Industry Co., or Foxconn, announced that it has agreed to acquire Belkin International, Inc., an American manufacturer of consumer electronics that specializes in connectivity devices, for approximately US$866 million in cash.
Foxconn Interconnect Technology Limited (FIT), the Hong Kong Exchange-listed unit of Foxconn, expects to tap into the premium accessories and the smart home market through the acquisition.
“FIT is excited to acquire Belkin and its capabilities in the premium consumer products space,” said Sidney Lu, CEO of FIT. “Integrating Belkin’s best-in-class capabilities and solutions into FIT, we expect to enrich our portfolio of premium consumer products and accelerate our penetration into the smart home.”
The acquisition is subject to approval of Committee on Foreign Investment in the United States (CFIUS), which has blocked a series of acquisitions of U.S. tech companies by Chinese enterprises.
Playa Vista, California-based Belkin International produces Wi-Fi networking solutions for the home and business, mobile accessories, smart home solutions such as home automation and intelligent water solutions, and a range of connectivity and power products. It has more than 1,400 employees with products sold in more than 50 countries. Belkin International is the parent organization to the Belkin, Linksys, Wemo and Phyn brands.
FIT focuses on the development and manufacturing of electronic and optoelectronic connectors, antennas, acoustic components, cables and modules for applications in computers, communication equipment, consumer electronics, automobiles, industrial and green energy field products.
The company recorded revenues of US$3.4 billion and profit of US$180 million last year. Mobile and wireless devices are the largest revenue source, accounting for 46.8% of the total revenues. Consumer electronics only accounted for about 24% of total revenues last year.
Last month, Foxconn’s another unit Foxconn Industrial Internet Co., a subsidiary planed an initial public offering on the Shanghai Stock Exchange to fund eight investment projects in China totalling RMB27.3 billion (US$4.3 billion).