Cisco Selling Off Linksys Unit to Belkin

Cisco is selling off the consumer and networking gear unit it acquired a decade ago with the purchase of Linksys to Belkin for an undisclosed sum and will work with the buyer on distribution and merketing, according to company officials.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Cisco Systems Inc. is selling off the consumer and networking gear unit it acquired a decade ago with the purchase of Linksys to Belkin Corp. for an undisclosed sum, according to company officials.

As part of the deal, Belkin and Cisco will partner on retail distribution, strategic marketing and products for the service provider market, officials said.

Related articles

“Combined, Belkin and Linksys will create a world-class consumer networking technology provider with complementary innovation and engineering strategies,” Hilton Romanski, vice president in charge of corporate business development wrote in an internal Cisco blog late Wednesday. “Linksys will enhance Belkin’s capabilities to meet the needs of OEMs, as well as provide access to a large user base.”

Cisco officials admitted in mid-December that they were looking to shed consumer and SMB products, and that the vendor had hired investment bank Barclays to explore the sale of the former Linksys division, which had since become a fully integrated unit within Cisco that caters to small business and consumer wireless and basic networking needs. The move is seen as part of a much larger strategy that has Cisco refocusing on enterprise business and sets up for a major acquisition to jumpstart growth.

Cisco bought Linksys for $500 million in 2003 as part of a shift toward consumers. Selling Linksys marks the last vestige of Cisco’s decade-long flirtation with the consumer market, which included other questionable acquisitions such as the maker of the Flip video camera. However, Linksys was much more than simply a collection of consumer products sold through retail; its 9,000 reseller partners made Linksys products the favorite among small and distributed businesses around the world.

>> CHECK OUT: 10 SDN Vendors Cisco Should Fear

From a channel perspective, offloading Linksys likely won’t be as painful as the assimilation. The two channels always had a significant amount of overlap; partners invested in the Cisco program will likely remain active and support both companies’ products.

Cisco likes to claim it's clairvoyant in being able to foretell coming trends and make strategic shifts for it and partners to capitalize. It will no doubt use that same language in the coming days following the sale of Linksys; just as it did when it bought Linksys in the first place.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

Want more articles like this?

Subscribe to Channelnomics for a daily newsletter roundup direct to your inbox

More on Channel Business

Just say ‘no’ to nostalgia


Success = planning + growth

For the technology channel, growth is key to success, but that growth won’t happen by itself


IoT set to rocket - Splunk

Exec says IoT adoption will spike rapidly just like cloud


Salesforce partners challenged to keep up amid ISV push

Channel execs say partners will need to leverage enablement resources to keep up with Salesforce as it looks to increase ISV business

Visitor comments
Add comments
blog comments powered by Disqus
Cloud computing circuit

Cloud taking back seat to staffing for MSPs

Desktop as a service will take some time to catch on


In endpoint security, trust matters

Survey finds that more than a quarter of solution providers pick vendor trustworthiness as a top priority for choosing antivirus vendor


Shadow IT: Emerging vulnerabilities and channel opportunities

Shadow IT may be tricky for end user organizations, but is an opportunity for the channel, says Secure Designs' Ron Culler


The good, the bad and the ugly - September 2015

Channelnomics examines the good news, bad news and downright ugly news that surrounded the channel in September