Belkin has confirmed that it is buying Cisco's Home Networking Business Unit.
The company will buy Cisco's products, technology, employees, and the Linksys brand.
Belkin's plan is to maintain the Linksys brand and will offer support for Linksys products as part of the transaction. No one is saying how much Belkin paid and it is expected to be a smooth transation for regulators and customers.
Belkin says it will honour all valid warranties for current and future Linksys products.
It means that Belkin will account for approximately 30 percent of the US retail home and small business networking market.
Hilton Romanski, Cisco's Vice President of Corporate Business Development wrote in his blog that Linksys has long been an important member of the Cisco family.
But the company was certain that it had found the best buyer in Belkin. The division was still in good shape, but Cisco really wanted to get out of the home networking market. There have been rumours that it had been hawking the division around potential buyers for months.
Cisco has been pulling out of the consumer market as part of its restructuring. Back in April 2011, the company shuttered its Flip video camera line, which was quickly losing out to the growing mobile space full of cameras included in smartphones.
Cisco's CEO John Chambers has said that the company's four key priorities are still core routing, switching and services, collaboration, architecture, and video.
Belkin and Cisco say they will develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing, and products for the service provider market.
Cisco will offer its specialised software packages while Belkin will bring its wide product line to the table.
Belkin CEO Chet Pipkin said the two companies share many core beliefs. Belkin wants to be the global leader in the connected home and wireless networking space while Cicso wants the business end.
Linksys was famous for its wireless connectivity products.