Foxconn, the Taiwanese manufacturing company that makes iPhones, announced the acquisition of Playa Vista-based Belkin for $866 million. The cash deal includes Belkin’s associated brands Linksys, Wemo and Phyn.
“Integrating Belkin’s best-in-class capabilities and solutions into FIT (Foxconn Interconnect Technology Ltd., a subsidiary of Foxconn), we expect to enrich our portfolio of premium consumer products and accelerate our penetration into the smart home,” Sidney Lu, the chief executive of FIT, said in a statement.
Foxconn will acquire Belkin’s phone and PC accessories, Linksys’ networking equipment, Wemo’s home automation equipment, and Phyn’s product, which notifies users of water leaks. Chet Pipkin, founder and CEO of Belkin, will stay on and continue to operate Belkin as a subsidiary of Foxconn.
According to The Financial Times, the deal is subject to approval from the U.S. Committee on Foreign Investment. The Trump administration has blocked other international acquisitions of U.S. companies, citing security risks. There’s some speculation that the same may happen in this case, however, Foxconn has said it plans to build a $10 billion factory in Wisconsin, which could help assuage the Trump administration.
This would be Foxconn’s first purchase of a consumer brand.
Technology reporter Eli Horowitz can be reached at firstname.lastname@example.org. Follow him on Twitter @coachhorowitz13 for the latest in L.A. tech news.
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