Cisco is going away from consumer maket by selling its Linksys unit to Belkin

The Much awaited Sale of Linksys is now happening. Thursday January 24 2013, Belkin announced its intent to acquire Cisco’s Home business unit, Linksys.  Cisco has confirmed this announcement in its blog that company is pleased to preserve Linksys business and create a win-win relationship. Hilton Romanski, Cisco’s VP of Corporate Business Development, said “Linksys has long been an important member of the Cisco family and we are confident that we have found the best buyer in Belkin.”

linksys-by-belkinLink : http://blogs.cisco.com/news/belkin-announces-intent-to-acquire-linksys/ and Belkin’s announcement http://www.belkin.com/us/pressreleases/8798355522620

If the deal’s transaction closed Belkin’s market share of Home and small business market in US will be increased to 30%.

Linksys

Linksys is SOHO brand founded at the year of 1988. It was acquired by Cisco in the year 2003 and products are branded as Linksys by Cisco. But SOHO is not Cisco’s play card. Back from 2007 Cisco has started its search for a buyer of Linksys. In 2007, John Chambers, CEO, Cisco conveyed Cisco’s idea to kill/sell the brand as “It will all come over time into a Cisco brand. The reason we kept Linksys’ brand because it was better known in the US than even Cisco was for the consumer. As you go globally there’s very little advantage in that.” To sell Linksys business unit last month Cisco hired Barclays Plc . Bloomberg, linked here quoted last month if Linksys sold it would fetch Cisco less than $500, at which Cisco bought Linksys

Now with this Deal Cisco is selling Sipura technology were offered under the Linksys Voice System brand. Sipura Technology, VoIP products maker was acquired by Cisco back in 2005 and merged with Linksys.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s