Belkin just made an announcement on Thursday that it would be acquiring the home networking unit of Cisco, which includes Linksys and the current products and employees.
This acquisition will give Belkin 30% of the small business and home network market. The company intends to honor all warranties and provide support for current products. It also plans to invest in the Linksys brand, which will remain separate from other Belkin products.
In markets where current Belkin and Linksys products compete, sources say that both names will be promoted because they attract a different user.
Future plans include finding ways to implement one line of products into the other line.
Cisco gained Linksys several years ago when it appeared to be trying to enter the consumer market. However, rumors have been going around for some time that the company was planning to sell it at some point. Even then, experts argued that it would be beneficial to Belkin to take over Linksys products. This acquisition allows Belkin to compete with other companies in this market, including Netgear, D-Link, and Apple.
Linksys is well-known as one of the biggest routing companies with a full range of routers and accessories. It carries an array of products ranging from around $60 in price to over $200. While this is an expensive purchase for some people, it does not provide a large profit range for the company. However, Linksys has been successful in the fact that it sells a large quantity of these devices.
Linksys started out as a stand-alone company back in 1988. The name became famous for its products and managed to keep the company name even when it was bought by Cisco. With Belkin a leader in home networking, Linksys stands to continue to expand its brand in the future. This change in ownership may be beneficial to the company.
[Image via cisco]