Foxconn press release:

Foxconn Interconnect Technology Limited (FIT) (HKG: 6088), a subsidiary of Hon Hai Precision Industry Co., Ltd., and Belkin International, Inc. (Belkin®, Linksys®, Wemo®, Phyn® brands) jointly announced today the signing of a definitive agreement under which FIT agreed to acquire Belkin International for approximately US$866 million in cash, creating a global consumer electronics leader.

Fine. But why?

Foxconn is the largest private employer in China (not important to the discussion, but interesting). They manufacture things for other companies, most notably Apple, Microsoft (Xbox One), Sony (Playstation), Nintendo (WiiU), and Intel (motherboards). How does Belkin help them?

Leveraging Belkin’s strength in research and development capabilities and the consumer products channel, FIT is expected to further tap into premium accessories and the smart home market. The transaction would also fuel the growth of Belkin’s portfolio of brands and products and supports further investment in research and development and engineering to expand FIT and Belkin’s presence in the U.S. and key markets globally.

Belkin owns Linksys. A mature, well known brand. Is Foxconn building its own end game, leveraging its move into the US and cheap manufacturing costs to compete in the consumer electronics space under its own auspices, a bit of a trojan horse, giving it instant legitimacy in the product space?

From The Financial Times:

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.

Keep your eye on Belkin. I suspect they are in for a bit of a rocket ride.