Cisco Completes the Sale of its Home Networking Business
Belkin will manage Linksys as a separate brand and product portfolio.
On March 15, 2013, Cisco completes the sale of its Home Networking business and leading brand, Linksys, to Belkin.
Belkin intends to maintain the Linksys brand and will offer support for Linksys products as part of this transaction. All valid warranties will be honored by Belkin for current and future Linksys products. After the transaction closes, Belkin will account for approximately 30 percent of the U.S. retail home consumer market.
Belkin and Cisco intend to pursue a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market. Having access to Cisco's specialized software solutions across all of Belkin's product lines will bring a more seamless user experience for customers. Merging the innovation capabilities of Linksys and Belkin provides a powerful platform from which to develop the next generation of home networking technology.
This transaction allows Cisco to continue its focus on its core markets across the company while also creating a strategic partnership with Belkin in order to ensure that customers have the same level of service and experience in home networking.
- Q: What has been announced today?
- A: Today, Cisco is announcing the sale of its Home Networking Business Unit, including the Linksys products, technology, brand and talented employees to Belkin.
- Q: Why is Cisco doing this?
- A: As Cisco realigns its business along its five strategic priorities, it has decided to exit the home router direct-to-consumer business. In terms of timing, the Home Networking Business Unit has seen its business and margin profile substantially improve over the past year. This has enabled Cisco to find a strong strategic buyer in Belkin that will best position the Linksys product line for future success, as well as continue to extend the reach of Cisco's video and service provider solutions into the home.
If you are an existing customer or partner of Cisco and have questions about your product or services, please visit our Home Networking Support Site.
Accelerating Cisco's Networking Solutions
Cisco continues to execute on its plan and focus on its five strategic priorities: core (routing, switching and services); collaboration; data center, virtualization and cloud; architectures; and video.
This agreement supports Cisco's commitment to its partners and customers by focusing on the intelligence of the network and building technology architectures to solve our customers' most important business challenges.