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Foxconn Unit To Buy Belkin Intl. For $866 Mln

Foxconn Interconnect Technology Limited, carrying on business in Hong Kong as FIT Hon Teng Limited, agreed to acquire U.S. consumer electronics maker Belkin International for $866 million in cash, by way of merger.

In a filing on Tuesday, FIT Hon Teng, a unit of Foxconn Technology Group, revealed that upon completion of the merger, Belkin will become a direct wholly-owned subsidiary of the Company. The acquired business and its subsidiaries will be accounted for as subsidiaries in the Company's financial statements.

Belkin, a california-based manufacturer of Wi-Fi routers, mobile device chargers and keyboards, with over 700 patents, generated sales of about $789 million in the fiscal year ended Sept. 30.

FIT said it expects synergies to be achieved from the Merger through mutual leverage of customer channels and sales networks as well as technological and production capabilities.

FIT also anticipates that formation of a new "smart home" business, by combining the existing Linksys and Wemo businesses and related assets, will also help achieve synergies in the Group's businesses.

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