China’s LeEco to buy U.S. electronics company Vizio for $2 billion

(Reuters) — China’s Le Holdings Co, also known as LeEco, said on Tuesday it would buy U.S. consumer electronics company Vizio for $2 billion.

Irvine, California-based Vizio makes affordable flat screen televisions, soundbars and LCD monitors. Founded in 2002, the company is now one of the largest manufacturers of TV sets in the United States.

Vizio, which filed for an initial public offering last year, generated sales of $1.3 billion in the first six months of 2015, according to IPO documents.

Vizio’s hardware and software units will be operated as a wholly owned subsidiary of LeEco. The company’s Inscape TV viewership data business will be spun out as a privately owned company, LeEco said.

Founded in 2004, LeEco started selling smartphones in China in April last year. Earlier this year, the company unveiled an all-electric battery concept car.

Bank of America Merrill Lynch advised Vizio on the deal, while Latham & Watkins LLP was the legal counsel. The transaction is expected to close during the fourth quarter.

(Reporting by Rishika Sadam in Bengaluru; Editing by Saumyadeb Chakrabarty)