Network device manufacturer Belkin has finalized its Linksys acquisition that was announced by Cisco in early 2013.
Under terms of the deal, Belkin will gain full control of the popular Linksys brand and offer support for all of Cisco’s products that integrate with Linksys technology. Belkin will maintain full brand control over Linksys products and associated services. That Belkin control includes support services plus warranty and repair issues that might pop up following the acquisition.
With the Linksys acquisition finalized, Belkin now claims a 30 percent marketshare for the US home and small business networking market.
Belkin will continue to offer Linksys branded devices, and the company plans to announce new Linksys products in Q2 2013.
The decision to allow for Linksys and Belkin branded products to remain on the same open market is a smart decision for the company. With two distinct brands, Belkin and Linksys can address different types of customers who require different networking solutions.
While two brands will remain on the market, the companies will be able to share their technologies and patents openly with no additional costs of development. Ultimately, Linksys and Belkin should both benefit from the acquisition.
Belkin, in the meantime, was founded in 1983 and remains a privately held company to this very day. That private holding allows the company to innovate and purchase companies without the need for shareholder approval. Dell is currently attempting to go private so it can once again take chances with new innovations in the field of personal computing.
Belkin and Linksys now combine their employment numbers for a total of more than 1,500 employees in more than 100 countries.
The terms of the Belkin deal with Cisco have not been revealed at this time.
Do you think the Linksys acquisition was a smart move on behalf of Belkin? And do you think the companies when combined will lead to a monopolization of the open market space for wireless devices?
