Pre existing rumors about Cisco wanting to sell its home router division have actually taken real shape. Early this afternoon, Belkin made an announcement that it was heading towards acquiring Cisco’s home networking business, which has under its name the Linksys brand.
Though it will also be grabbing other products, resources and employees from under Cisco’s hood it maintained that the Linksys brand will hold on to its name. It also promised to provide support for the various Linksys products along with the guarantee that it would make sure to honor valid warranties for current and future Linksys products.
Overtaking Linksys is going to enhance Belkin’s capabilities to meet the needs of OEMs along with being able to provide access to a huge user data base. Cisco and Belkin plan to get together and form a strategy which will cater to focusing on variable initiatives including the likes of retail distribution, strategic marketing and products meant for the service provider market.
Initially, the purchase had taken place in 2003 when Cisco purchased the home router company for a price of $500 million. The current buyout is also expected to contribute towards Belkin’s growing reach by a considerable margin and after the transaction is complete, Belkin has assured that it would account for around 30 percent of the home and retail small business networking market in the U.S.
The deal is expected to be completed by March, but any financial terms and details have not been disclosed as of yet.