|By Maureen O'Gara||
|January 28, 2013 07:45 AM EST||
Cisco disclosed late Thursday that it has agreed to sell its Home Networking Business Unit, which includes its Linksys routers, to privately owned Belkin International.
Terms were not disclosed.
Cisco bought Linksys in 2003 for $500 million worth of common stock but has been shedding its consumer interests like the Flip video camera lately to focus on commercial sales and Linksys was reportedly unlikely to fetch anywhere near the price Cisco originally paid for it.
Linksys routers have not maintained their quality under Cisco's administration and sales by the unit where it was housed have fallen 35% over the last two year, Bloomberg recounts.
The deal should close in March.
Belkin said the acquisition will give it 30% of the US retail home and small-business networking market.
The companies mean to develop a strategic relationship on various initiatives including retail distribution, strategic marketing and products for the service provider market.
Bloomberg said back in December that Cisco had Barclays out spotting a potential buyer.
- "All It Took Was One E-Mail to Larry," Says Former eBay Research Director As He Moves to Google
- Google Ramps Up Its Mobile Reach: Launches "Mobile Web Search"
- Ericsson + Napster = World's First "Wireless Digital Music" Brand
- VoIP Update: Yahoo! Buys DialPad
- Free Guest Passes for the SOA World Conference & Expo in NYC
- SYS-CON i-Technology Podcast August 30, 2005
- A Flair for Food - Health-Conscious Cooking Is This Chef's Cup Of Tea
- Sony PSP May Feature Porn
- Kapow Helps Seiko UK, Provides SMS Text-Alert Services
- South Korea is World's Largest Phisher