Chinese smartphone maker LeEco on Tuesday announced plans to acquire US TV maker Vizio for $2 billion.
Under the agreement, LeEco will acquire all of Vizio's hardware and software operations, technology, and intellectual property. Vizio's data business, Inscape, will spin off as a separate, privately owned company. The deal is expected to close before the end of the year.
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In a statement, LeEco Chairman and CEO YT Jia said the acquisition "is an important step in our globalization strategy and building our North American presence."
For Vizio, meanwhile, LeEco offers "immediate global scale to bring its innovations to consumers worldwide," the companies said.
The Vizio brand is not going away. After the deal goes through, Vizio's executive management team will remain in place and continue their work as an independent LeEco subsidiary from their existing base in Irvine, Calif. Vizio's products will continue to be sold where you can find them today, and supported by the same North American-based customer service team.
"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 [consumer electronics] brands in North America," Vizio Founder and CEO William Wang said in a statement. "I'm excited to see how LeEco's global reach and resources will elevate Vizio as we continue to bring great technology, innovation and value to our consumers."
Following the acquisition, Wang will transition to Chairman and CEO of Inscape.
LeEco, previously known as LeTV, doesn't have much of a presence in the US. Earlier this year, we got a glimpse at CES when the LeTV Le Max Pro was announced as the first phone to use Qualcomm's new Snapdragon 820 processor.
Meanwhile, this isn't the only big tech acquisition this week. Verizon yesterday announced plans to acquire Yahoo for $4.8 billion.