Digital entertainment guide provider Rovi Corp said on Friday it is buying TiVo Inc, which makes digital-video recorders, in a deal valued at about $1.1 billion.
The combined company will adopt “TiVo” as its new name.
The $10.70 per-share cash-and-stock offer represents a premium of 13.6 percent to TiVo's Thursday closing.
“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, in a statement. “It’s an exciting time as the media and entertainment landscape undergoes a significant evolution."
The two businesses are similar so that a combination is compelling in terms of both revenue and cost synergies, a Bloomberg report said.
Rovi postponed a scheduled post-earnings conference call to Friday morning, without providing a reason. The company was scheduled to host the call at 5:00 p.m. ET (2100 GMT) on Thursday.