Cisco has sold off its last consumer entity to one-time competitor Belkin: the Linksys wireless router brand.
While the financial terms of the deal haven't been closed, this is a big purchase for Belkin as it will give it a 30 per cent marketshare in the home networking market. Belkin has had previous home networking tools on the market, but Linksys has dominated the space for quite a while.
“Our two organisations share many core beliefs – we have similar beginnings and share a passion for meeting the real needs of our customers through the strengths of an entrepreneurial culture," said Chet Pipkin, CEO of Belkin.
"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 realising that vision.”
Linksys was founded in 1988 and was acquired by Cisco in 2003. As Cisco moves deeper into the enterprise space, Linksys has been dumped in what looks to be a focus move.
Belkin didn't explain how it will transfer the Linksys name into its current router line-up, but did say it will continue to support Linksys products made by Cisco and keep the Linksys brand around.
After the acquisition of Linksys, Belkin and Cisco plan to develop a business relationship that includes retail distribution, strategic marketing and products for the service provider market.
“The acquisition of Linksys and the combination of Belkin’s and Linksys’ expertise and innovation will position us to meet the demands of today’s rapidly evolving advances in technology," said Pipkin. "We look forward to honoring the heritage of the Linksys brand and investing in the continuing evolution of its product portfolio.
"Together, we will provide a powerful, simple to use, and reliable wireless and networking platform for the markets we serve.”
The deal is expected to close in March 2013.