Chinese handset maker LeEco today said it has acquired US-based consumer electronics firm VIZIO for USD 2 billion.
As part of the definitive agreement, LeEco will acquire all of the VIZIO hardware and software operations, technology and intellectual property and the transaction is expected to close during the fourth quarter of 2016, LeEco said in a statement.
The VIZIO hardware and software businesses will be owned and operated as a wholly-owned subsidiary of LeEco, while VIZIO's data business -- Inscape -- will spin out and operate as a separate, privately-owned company, it added.
"LeEco believes in breakthrough technologies, a complete ecosystem and disruptive pricing. Acquiring VIZIO is an important step in our globalisation strategy and building our North American presence," LeEco founder, Chairman and Chief Executive Officer Yueting Jia said.
VIZIO aligns with LeEco's vision of breaking boundaries to deliver consumer-focused products, software and services, he added.
Founded in 2002, VIZIO is a leading consumer electronics brand in North America, especially in categories like Smart TVs and sound bars. It has sold over 70 million products.
The acquisition will offer LeEco a steady install base of users and a brand that is both popular and successfully distributed throughout major North American retail channels, it said.
"Fourteen years ago, I mortgaged my house to start VIZIO and since then, it has grown into one of the most well-known and respected CE brands in North America. As an entrepreneur, I couldn't be more proud of what has been accomplished," VIZIO founder, Chairman and CEO William Wang said.
The VIZIO executive management team will remain in place and will continue its operations as an independent subsidiary from its existing headquarters in Irvine, CA.
VIZIO's brand and its portfolio of products will continue to be sold through its existing distribution channels.
William Wang will transition to Chairman and Chief Executive Officer of Inscape, with focus on the continued expansion and growth of the brand's data business.
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