Chinese technology company LeEco has announced to acquire US television manufacturer Vizio for US$2 billion.
According to the agreement, the Vizio hardware and software businesses will be owned and operated as a wholly owned subsidiary of LeEco, while the Vizio data business, Inscape, will spin out and operate as a separate, privately owned company.
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.
William Wang, founder and CEO of Vizio, will transition to chairman and chief executive officer of Inscape, with focus on the continued expansion and growth of the brand’s data business.
“LeEco believes in breakthrough technologies, a complete ecosystem and disruptive pricing. Acquiring VIZIO is an important step in our globalization strategy and building our North American presence,” said YT Jia, founder, chairman and chief executive officer, LeEco.
The transaction is expected to close during the fourth quarter of 2016.