Cisco Sells Linksys Home Router Unit
Northern, WI 1/27/2013 (avauncer) -Cisco (NASDAQ:CSCO) sells its Home maker unit to Belkin International Inc. based in California and having presence in many countries .The company provides a lot of accessories for Apple’s Iphone and IPad. Linksys has been the main business for Cisco but it has been a loss for the company for the past two years. Linksys has been providing wireless network for households and corporates.
By this sale, Belkin now holds 36 percent share in US for the supply of wireless network to houses and small businesses. However, the amount was not disclosed by both the parties, it is said that it is expected to fetch less than $500 Million the amount that it spent to buy Linksys in 2003, reason being low margin consumer business. Cisco has announced the purchase of Intucell Ltd, Israel based company to gain technology that helps wireless carriers to manage network for $475 Million.
Cisco has cut about 7800 jobs in the past two years, and has closed business such as Flip video camera unit to focus on higher margin sales to business.
Cisco’s (NASDAQ:CSCO) shares trading up by 0.62% to close at $21.15.