Sister company Foxconn buys Belkin, Wemo and Linksys

A sister company of the Taiwanese electronics manufacturer Foxconn has bought the American Belkin. Belkin is the parent company of brands such as Linksys, Belkin and Wemo. The Taiwanese company will pay $866 million.

The company making the purchase is Foxconn Interconnect Technology, or FIT for short, and just like the electronics manufacturer, it falls under parent company Hon Hai. The brands as they are now will continue to exist for the time being, both companies report.

With the purchase, FIT wants to become a player in the global market for smart home products. Among other things, FIT wants to invest in R&D and strengthen the presence of the Belkin brands in important markets for the companies and worldwide.

Both companies have signed a definitive contract. The press release makes no mention of any approval by relevant authorities. It is not inconceivable that the US government in particular would object to the takeover. The US government has often shown fear about Chinese espionage via electronics and it has blocked deals, among other things, with which providers would sell Huawei smartphones in the United States.

Belkin itself mainly sells accessories such as cables and chargers. Wemo makes security cameras and remote-controlled lights, among other things. Linksys is best known for routers. Belkin is an American company that has existed since 1983.