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Foxconn acquires accessory maker Belkin for $866M

Foxconn Interconnect Technology Ltd. agreed to acquire Belkin International Inc. for about $866 million in cash.

Following the completion of the deal, Belkin International and its family of brands, Belkin, Linksys, Wemo and Phyn, will operate as a unit of Foxconn, the companies said in a statement.

Belkin founder and CEO Chet Pipkin will continue serving the company under the same role and is expected to join Foxconn's management team.

The U.S. company targets to leverage the Hon Hai Precision Industry Co. Ltd. unit's "manufacturing capability to enhance Belkin's operating efficiency," Pipkin said in the company release.

Belkin also eyes to gain investments for research and development, as well as engineering, which is anticipated to aid both companies' expansion in the U.S. and other key markets.

Meanwhile, Foxconn is expected to further penetrate the accessories and the smart home market.