Belkin just finalized the complete acquisition of Linksys from Cisco according to CNET. Despite the said announcement, however, it was clear that Linksys is too big of a name to remove it from the picture. Hence, it is understandable why Belkin opted to keep Linksys a separate brand.
Linksys was bought by Cisco back in 2003. The said deal was actually worth around $500 million back then and just like the acquisition today, Linksys was able to keep its name with a certain addition. It was turned into Linksys by Cisco. The brand had two product lines under its name namely: Linksys E series and Linksys EA series. The latter product line uses the Cisco Connect Cloud in order to have access to the Cloud service even when using third party applications.
There have been rumors that Belkin was interested in buying off Linksys from Cisco as early as last year. However, this intention was only made public around January this year and it only took them around three months to do so. This means that every product under the Linksys technology will now be maintained and managed by Belkin but it will still be a separate brand and will keep its name plus product portfolio.
The sale was actually just a move by Cisco to further improve its focus on its product lines said the company. Reportedly, prior to the sale of Linksys, the company also sold the Flip camcorder back in 2011.
Based on an article published in CNET, consumers should not have any problems with this acquisition because the company, Belkin, plans on continuing the technical and customer support for people who already have Linksys’ products. It should also be noted that all the warranties for past sales are still going to be honored by the company.
Consequently, the changes will have no effect with the servers currently offered by Cisco because even the Cisco Connect Cloud will remain intact. Users will still be able to control and even manage their home networks that were previously powered by the company. It will still work but will not be using the Cisco brand name.
Chet Pipkin, Belkin CEO, announced that the portfolio will continue to exist but will include an even better experience for users through a wider functionality for the management of its network. This latest acquisition will definitely put Belkin on the map when it comes to home networking making it more advanced compared to its competitors like Netgear, Trendnet, TP Link and D Link.
Furthermore, Belkin promises that existing customers should not have any problems accessing supports previously provided by Cisco. It stated that existing customers can continue to get support from the existing channels on the Linksys website.
Many of you might be wondering how much Linksys was actually worth, however, more details about the purchase were not disclosed by the company. But since Linksys was bought for around $500 million back in 2003, one could stipulate that it definitely cost Belkin more than that to acquire it.