Chinese technology company LeEco plans to acquire American consumer electronics brand Vizio for $2 billion, both companies announced on Tuesday.

"We hope that we can use the ecosystem model and create a great integration between Vizio and LeEco and create new values for U.S. users," Jia Yueting, LeEco's CEO, told CNBC on Tuesday.

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Under the new agreement, LeEco, which is dubbed as the "Netflix of China," will gain 100 percent ownership to the TV and audio company as a fully owned subsidiary, including the operation of Vizio's hardware and software businesses.

On the other hand, Inscape, which is Vizio's data business that gathers anonymized viewer data in real time, will spin out as a private firm. William Wang, founder and CEO of Vizio, will remain as its chairman and CEO. He will get 51 percent ownership, while LeEco will acquire the remaining 49 percent.

The deal between LeEco and Vizio is expected to be finalized by the end of the fourth quarter this year.

The acquisition will also allow LeEco to reach the North American industry, permitting it to compete with the likes of Samsung, Apple, and even Tesla, which Jia has criticized for their lack of innovation.

He, however, stressed that LeEco is an open model. "LeEco looks like an enemy to all, but actually we are the best ecosystem partner for everyone," he noted.

Meanwhile, Jia believes that the initiative will give LeEco and Vizio "great influence" in the global TV industry and could potentially establish the world's biggest ecosystem TV company.

Meanwhile, Wang is "excited to see how LeEco's global reach and resources will elevate Vizio."

TagsLeeco, Vizio, technology, Samsung, apple