The multinational electronic Taiwanese company Foxconn announced their major next step of acquiring Belkin. This deal will give them access to 700 patents held by Belkin. Foxconn company which was popularly known for manufacturing iPhone is going to soon become a company known for manufacturing various computer peripherals and other accessories. Belkin was known to be the great manufacturer of products such as laptop docks, routers, wireless dock charger and thus acquiring Belkin would help Foxconn to become another major electronic brand. Foxconn international inc said that it would pay $866 Million to Belkin in cash. This deal will ensure not just acquisition of Belkin but also its major brands such as Phyn, Wemo and Linksys. Since earlier this year Foxconn has been talking about of expanding its business landscape and not just being stuck over manufacturing of iPhone. It has been known that Belkin though acquired will run separately from Foxconn with the CEO Chet Pipkin continuing to manage his company. Foxconn has been on the run of acquiring big brands before as well but this acquisition is its first major consumer direct facing brand. Foxconn had acquired a company named spark before as well. Spark was known for good display manufacturer brand in Japan. Belkin was founded in 1983 and has around 1400 employees all over the world. Belkin had near about $ 780 million sales in the fiscal year September, the filing said. Shares of the Foxconn company were up by 1 percent after the trade of acquisition. Even Belkin had acquired in 2013 Cisco home working division Linksys which was their major move.
Chit spoke to the media that this move of acquisition will ensure to accelerate their vision of making world a better place and this move will also ensure to deliver people a quality product making thing easier and better to be used. Foxconn CEO Sydney Lu said to the media that they were pretty excited to acquire Belkin because of their major step move of acquisition and moving towards a consumer facing brand. He also added that integrating the major brand Belkin would help them to enrich the quality of their premium product and accelerate their idea of making a smart home product. He said that Belkin and its brand will operate under the subsidiary of FIT.
However, Foxconn has still did not converted the deal yet. It has to get the approval of US committee of Foreign investment. Foxconn has also promised to set up a factory at Wisconsin worth $10 Billion. Foxconn plan is to obviously set up their own brand rather than just known for iPhone manufacturing. After big brand companies acquisition, this acquisition could become a major step of the world to conquer the brand of electronics items. Foxconn first plan in the future would be to set up a router product which they will be getting from this acquisition of Belkin (Linksys). Thus, Foxconn can be the next electronic known company.