Walmart has completed its acquisition of TV maker VIZIO, which it made a move to purchase as part of a larger plan to enhance its shopping experience and help advertisers connect with customers in new ways. 

The deal closed yesterday, giving Walmart control of VIZIO and its SmartCast Operating System for US$11.50 per share in cash (or roughly US$2.3 billion in fully diluted equity value). VIZIO’s business will now be reported as part of Walmart’s US segment. 

The two companies will continue to operate separately for the foreseeable future, with VIZIO CEO and founder William Wang remaining in place but reporting to Seth Dallaire, EVP and chief growth officer for Walmart US. 

According to a statement it issued in February when the deal was first announced, Walmart is tapping into two market opportunities with this acquisition: selling more smart TVs, and using VIZIO’s platforms and tech to advertise to more consumers. 

The retailer plans to use VIZIO’s tech to build up its Walmart Connect ad business in the US, putting sellers and brands in front of consumers both virtually (through online placements) and in real life (through in-store promotions). In Q3, Walmart reported US$169.6 billion in consolidated revenue—which was up by 5.5% from the same period last year, thanks in part to the growth of Walmart Connect. 

Founded in 2002, VIZIO primarily sells TVs and home devices, but the company’s Platform+ advertising business, which places ads and sponsorship on its TVs and platforms including the WatchFree FAST channel, currently accounts for all the company’s gross profit, according to Walmart. 

Image courtesy of Walmart.