Foxconn, the Taiwanese based manufacturing company, shelled out $866 million in cash to acquire Belkin, which also includes Belkin sub-brands like Linksys and Wemo. Foxconn is one of the biggest manufacturers for Apple as well as manufacturers in general.
Belkin, an American tech company, has gained its popularity in the market place due to their Apple friendly accessories; most recently their wireless Apple chargers. Not only is Foxconn purchasing Belkin, but they will have the ownership to all the brands under Belkin as well. As I’ve mentioned before, Linksys a sub-brand of Belkin, is one of the largest router brands in the US.
Though hands have been shaken, it is not a done deal yet. Due to the recent political environments, it has made it significantly harder for foreign acquisitions; especially one of this magnitude. A Financial Times article stated that the purchase is still waiting for the US Committee on Foreign Investment’s pending approval. However, as part of the deal, Foxconn has promised to build a $10 billion factory in Wisconsin; a persuasive factor to further push acquisition along.
The verdict is still out if the purchase will actually go through. No matter what happens, this is still one of the biggest foreign acquisitions in recent times. We’ll keep you guys updated as soon as we know!