Cisco to Sell Linksys Unit to Rival Belkin

The networking giant is exiting the home equipment market

   

Cisco to Sell Linksys Unit to Rival Belkin

cisco sign flickr 630 300x191 Cisco to Sell Linksys Unit to Rival BelkinOn Thursday, electronics maker Belkin announced that it will acquire Cisco‘s (NASDAQ:CSCO) Linksys home networking unit.

Cisco, which acquired Linksys in 2003 for $500 million, has been moving to exit the consumer networking market in order to focus on its primary commercial business, Reuters noted.

12499015 electronic chip on circuit board 200x200 Cisco to Sell Linksys Unit to Rival Belkin
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An analyst noted that home networking products carried lower margins compared to Cisco’s commerical networking equipment business. Neither company disclosed the price of the sale, which is anticipated to be completed in March.

The addition of Linksys gives privately-held Belkin a 30% share of the home and small business networking equipment market.

Earlier this week, Cisco said it would purchase Intucell, an Israel-based developer of software used to manage cellular networks, for $475 million.

Shares of Cisco rose fractionally in Friday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/01/cisco-to-sell-linksys-unit-to-rival-belkin/.

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