by Christopher Freeburn | January 25, 2013 9:57 am
On 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.
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.
Source URL: http://investorplace.com/2013/01/cisco-to-sell-linksys-unit-to-rival-belkin/
Short URL: http://invstplc.com/1fv49U4
Copyright ©2016 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.