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

FILE PHOTO: The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen at its headquarters in New Taipei City, Taiwan June 12, 2017. REUTERS/Eason Lam/File Photo

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.

It is a unit of Foxconn, the world's largest contract manufacturer and major Apple Inc AAPL.O supplier, which is formally known as Hon Hai Precision Industry Co Ltd 2317.TW.

Reporting By Anne Marie Roantree; Editing by Himani Sarkar