HONG KONG (Reuters) - FIT Hon Teng Ltd (6088.HK), 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 .HSI.
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.
Reporting By Anne Marie Roantree; Editing by Himani Sarkar