Rovi Announces Acquisition Of TiVo To Create A '$3 Billion Entertainment Technology Leader'
Rovi Corporation (NASDAQ: ROVI) announced Friday it has entered into an agreement to fully acquire TiVo Inc. (NASDAQ: TIVO) in a transaction that values the company at $1.1 billion, or $10.70 per share.
The offer represents a premium of approximately 40 percent of TiVo's closing price of $7.66 on March 23 - the final trading day prior to media reports about a potential merger.
Related Link: Tivo Merger Talk With Rovi Boost Shares
Rovi noted its acquisition will create a "$3 billion entertainment technology leader" as it combines two "of the industry's most influential players." The company added the deal will be accretive to its non-GAAP earnings per share within the first 12 months of the deal closing and generate $100 million in annual cost synergies.
The combined entity will consist of an IP portfolio of over 6,000 issued patents and pending applications.
Rovi said it will adopt the iconic TiVo brand as its new company name.
"Rovi's acquisition of TiVo, with its innovative products, talented team, and substantial intellectual property portfolio, strengthens Rovi's position as a global leader in media discovery, metadata, analytics, and IP licensing," said Tom Carson, CEO of Rovi. "It's an exciting time as the media and entertainment landscape undergoes a significant evolution. The combined capabilities of TiVo and Rovi place us in a tremendous position to extend services across platforms and to a customer base that includes traditional, over-the-top and emerging players across the globe. By working together, Rovi and TiVo will revolutionize how consumers experience media and entertainment and at the same time build value for our stockholders."
"We're proud of TiVo's strong innovation history and of the ongoing efforts of our team to provide best-in-class products for our loyal consumer and service provider customers," said Naveen Chopra, Interim CEO and CFO of TiVo. "This transaction is the culmination of those efforts and the logical next step for TiVo. In joining forces with Rovi, our customers, employees and stockholders will benefit from being part of a more diversified industry leader with significantly greater market opportunities. Our combination creates a more influential global player with a commitment to product innovation, which will be incredibly well positioned to redefine television."
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