In news that clearly shows the effect of the economy on business Cisco has today revealed that they will be selling their Linksys wireless router brand to their one-time competitor Belkin.
This will mean Belkin will gain a 30% marketshare in the home networking market adding to the many home networking tools they currently have for sale on the market, Chet Pipkin the CEO of Belkin responded with the following statement:
“Our two organizations share many core beliefs – we have similar beginnings and share a passion for meeting the real needs of our customers through the strengths of an entrepreneurial culture, Belkin’s ultimate goal is to be the global leader in the connected home and wireless networking space and this acquisition is an important step to realizing that vision.”
The Linksys brand was first founded in 1988 which was then acquired by Cisco in 2003. Belkin has not yet explained how the Linksys brand will fit into their current router lineup, but have said they continue to support Linksys products made by Cisco and keep the Linksys brand around.
“The acquisition of Linksys and the combination of Belkin’s and Linksys’ expertise and innovation will position us to meet the demands of today’s rapidly evolving advances in technology, we look forward to honoring the heritage of the Linksys brand and investing in the continuing evolution of its product portfolio. Together, we will provide a powerful, simple to use, and reliable wireless and networking platform for the markets we serve.” Pipkin continued to say.
There’s no financial information for the deal yet but we do know it is expected to close in March 2013.