Rovi buying TiVo in $1.1B cash-and-stock deal

Rovi buying TiVo in $1.1B cash-and-stock deal
In this file photo taken March 1, 2010, a TiVo Wireless N Adapter is displayed in New York. Digital TV listing company Rovi is buying TiVo in a cash-and-stock deal valued at about $1.1 billion. Rovi Corp. said Friday, April 29, 2016 that it will pay $10.70 in cash and stock for each TiVo Inc. share. Rovi will pay $2.75 per share in cash, or about $277 million. The rest, $7.95 per share, will be paid in stock.(AP Photo/Mark Lennihan, File)

Digital TV listing company Rovi is buying TiVo in a cash-and-stock deal valued at about $1.1 billion.

Rovi Corp. said Friday that it will pay $10.70 in cash and stock for each TiVo Inc. . Rovi will pay $2.75 per share in cash, or about $277 million. The rest, $7.95 per share, will be paid in stock.

Once the deal closes, the combined business will use the TiVo name. TiVo is a digital video recording company.

Rovi CEO Tom Carson will serve as CEO of the new . The executive said in a written statement on Friday that the buyout will help to extend services across platforms and expand its customer base. The transaction will add more than 10 million TiVo-served households to Rovi's current customer base of about 18 million households using its guides globally.

The companies anticipate at least $100 million in annual cost savings. The transaction is expected to add to Rovi's adjusted earnings per share within the first year after closing.

Both companies' boards have approved the , which is targeted to close in the third quarter. It still needs approval from both companies' shareholders.

Shares of TiVo, based in San Jose, California, added 17 cents to $9.59 in premarket trading. Shares of Rovi, based in Santa Clara, California, surged $1.15, or 6.6 percent, to $18.50.


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