New Delhi, July 27 (ANI
): Chinese electronics firm LeEco announced buying of American TV manufacturer Vizio for US
D two billion. The acquisition was announced under a definitive agreement under which LeEco will solely look after the hardware and software businesses of VIZIO.
LeEco develops intelligent hardware that serves as the interface to connect individuals, interact with them and to enrich their lives through premium content and applications.
"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 Founder Chairman and Chief Executive Officer LeEco, Yueting Jia.
"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," added Jia.
Founded in 2002, VIZIO is a leading consumer electronics brand in North America, with number one unit share in smart TV
s1 and unit share in sound bars2.
The company is focused on delivering the ultimate home entertainment experience through its ecosystem of hardware, software and services.
The acquisition benefits both companies with VIZIO offering LeEco a steady install base of users and a brand that is both popular and successfully distributed throughout major North American retail channels.
"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 Founder Chairman and Chief Executive Officer VIZIO, William Wang.
"As we enter a new chapter with LeEco, I'm humbled by the hard work and dedication of VIZIO shareholders and employees. Their unwavering faith in the brand and commitment to excellence is what made this venture possible. 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," added William Wang. LeEco
will acquire all of the VIZIO hardware and software operations, technology and intellectual property.
The transaction is expected to close during the fourth quarter of 2016, and is subject to customary closing conditions.
BofA Merrill Lynch acted as advisor to the special committee of the VIZIO board of directors, and Latham and Watkins LLP served as legal counsel for VIZIO
on this transaction. (ANI