Chinese technology firm LeEco to buy US consumer electronics company Vizio for $2 bn

Chinese technology company Le Holdings Co Ltd, yesterday struck a deal to buy privately-owned US consumer electronics company Vizio Inc for $2 billion.

LeEcoAs part of the deal, Le Holdings, also known as LeEco, will acquire all of Vizio hardware and software operations, technology and intellectual property.

The transaction is expected to close during the fourth quarter of 2016, subject to customary closing conditions.

Post closing, Vizio hardware and software businesses will be owned and operated as a wholly owned subsidiary of LeEco, while its data business, Inscape, will spin out and operate as a separate, privately owned company.

LeEco said that the acquisition benefits both companies with Vizio offering LeEco an installation base of users and a brand that is both popular and successfully distributed throughout major North American retail channels.

Founded in 2002, Vizio is one of the largest manufacturers of TV sets in the US.

The California-based company is the leading manufacturer of Smart TVs and Sound Bars, and generated sales of $1.3 billion in the first six months of 2015.

LeEco (formerly Letv), is one of the largest online video companies in China and offers a wide array of next-generation connected products – including smartphones, TVs, bikes and cars

The Beijing-based company employs 5,000 people, and is currently expanding to other countries such as the US and India.

India became the first market LeEco entered outside of China.

''Acquiring VIZIO is an important step in our globalisation strategy and building our North American presence,'' said YT Jia, founder, chairman and CEO, LeEco.

''From its inception, VIZIO introduced a disruptive business model that changed the industry and aligns with our vision of breaking boundaries to deliver consumer-focused products, software and services.''

''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,'' said William Wang, founder, chairman and CEO, Vizio.