March 27, 2018 / 6:01 AM / a year ago

Unit of Taiwan's Foxconn to buy Belkin for $866 mln

HONG KONG, March 27 (Reuters) - FIT Hon Teng Ltd, the cable and connector division of Taiwan's Foxconn, said on Tuesday it planned to buy Belkin International, a maker of smartphone accessories and home networking products, for $866 million.

The move comes as FIT Hon Teng seeks a greater presence in new applications like car camera modules that are used in driverless cars, and hopes to tap into markets including medical, Internet-connected devices and green technology.

Belkin offers a wide range of consumer electronics products that are sold throughout the United States, Canada, South America, Asia and Europe and, according to FIT Hon Teng, the company has a strong growth potential.

"The rapid rise of 'smart home' products, and the near-term projections for the market, provide significant additional tailwinds to future growth," FIT Hon Teng said in a statement to the Hong Kong stock exchange.

Shares in the company were up 1 percent in afternoon trade, in line with the broader index.

FIT Hon Teng raised $342 million in an initial public offering last year and has said it is looking to expand in North America after building a presence in Asia and South America.

It is a unit of Foxconn, the world's largest contract manufacturer and major Apple Inc supplier, which is formally known as Hon Hai Precision Industry Co Ltd. (Reporting By Anne Marie Roantree; Editing by Himani Sarkar)

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