Xperi Corporation XPER and TiVo Corporation TIVO announced Thursday an agreement to merge in an all-stock transaction. The combined business is valued at $3 billion.
The merger agreement provides for a 0.455 fixed exchange ratio, which implies a 15% premium to TiVo's shareholders based on each of Xperi's and TiVo's 90-day volume-weighted average share prices. At close, Xperi shareholders will own 46.5% of the combined business, and TiVo shareholders will own approximately 53.5%.
"This landmark combination brings together two highly complementary companies poised to set the industry standard for user experiences across the digital value chain," said Jon Kirchner, CEO of Xperi in a statement. "Together, we will be able to integrate TiVo's leading content aggregation, metadata, discovery, and recommendation capabilities with our home, automotive, and mobile technology solutions to help our customers create experiences that excite and delight consumers."
TiVo shares traded higher by 9.4% to $8.63. The stock has a 52-week high of $11.78 and a 52-week low of $6.61.
Xperi shares closed Wednesday's session at $20.94. The stock has a 52-week high of $25.84 and a 52-week low of $16.51.
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