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LeEco, a China-based online video and internet TV content provider, is acquiring Vizio for $2 billion, the companies announced yesterday.

Under the agreement, LeEco will acquire all of Vizio’s hardware and software operations, technology, and intellectual property.

Named one of the “Most Innovative Companies” in 2016 by Fast Company, LeEco operates an open, integrated ecosystem enabled by a cloud-based platform and “develops intelligent hardware that serves as the interface to connect individuals, interact with them and to enrich their lives through premium content and applications,” according to the press release.

“LeEco believes in breakthrough technologies, a complete ecosystem, and disruptive pricing,” said YT Jia, Founder, chairman and CEO of LeEco. “Acquiring Vizio is an important step in our globalization strategy and building our North American presence. 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.”

Vizio’s existing management team will continue to operate as an independent subsidiary and its products will continue to be sold through existing distribution channels, according to the press statement.

Founded in 2002, Irvine, CA-based Vizio was the top producer of smart TVs in North America in the January through April 2016 period, according to the NPD Group’s Retail Tracking Service.

Commenting on the deal, IHS Technology analyst Paul Gagnon said the acquisition could impact the intensively competitive domestic TV market if LeEco applies its current business model to North America. “The Chinese company focuses on the growth of the paid content subscription, while it sells TV hardware at below manufacturing cost or even provides it for free during promotional periods.”

Gagnon added that one of LeEco’s biggest challenges will be convincing Vizio’s existing retailers that “it will be business as usual during the integration, with no loss of product quality/supply, account service or supply chain discipline.”