A Hong Kong-listed subsidiary of Taiwan-based iPhone supplier Foxconn said on Tuesday it had agreed to buy US consumer electronics maker Belkin International for $866 million (€697 million) by way of a merger.
FIT Hon Teng said in a filing to the Hong Kong stock exchange on Tuesday that the merger with Belkin, which manufactures products including wireless charging devices and networking products, will give it access to sales networks, technology and production capabilities. Belkin has more than 700 patents.
FIT makes connectors as well as wired and wireless communications products.
The company expects to establish a new “smart home” business by combining Belkin’s existing Linksys and Wemo businesses with similar FIT assets.
FIT will fund the acquisition through its internal resources, equity or debt financing through capital markets or a combination.
Once the deal is completed, Belkin will become a directly-owned subsidiary of FIT. Belkin founder and chief executive Chester J. Pipkin will become chief executive of the new subsidiary.
The merger is subject to approval from the Committee on Foreign Investment in the United States. – Copyright The Financial Times Limited 2018