The deal between the companies is expected to close by March 2013.
Cisco Systems has signed a deal to sell its home networking unit brand to to Belkin International, as part of its plan to exit from the consumer business.
Belkin International on the other hand said the acquisition will help the company strenthen its presence in the connected home and wireless networking market.
The manufacturer plans to maintain and support the Linksys brand of home and small-office networking products, while honoring all valid warranties for current and future Linksys products.
Belkin said that the acquisition will allow it to take a 30% share in the US retail home and small-business networking brand.
Both companies aim to develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market.
In June 2012, Cisco released its Connect Cloud, a software platform for Linksys Smart Wi-Fi Routers that simplifies how consumers connect, control and interact with their connected devices.