The company was incorporated January 8, 1996, as a subsidiary of Bay Networks, to "focus on providing networking solutions for small businesses and homes. In August 1998, the company was purchased by Nortel as part of its acquisition of Bay Networks. Netgear remained a wholly owned subsidiary of Nortel until March 2000, when it began transitioning to third-party ownership. It became fully independent from Nortel as of February 2002.