TiVo Corp is to merge with Xperi Corp, creating one of the largest licensing companies in the world. In an all-stock transaction representing approximately $3 billion (€2.7bn) of combined enterprise value and following the close of the transaction, Xperi shareholders will own approximately 46.5 per cent of the combined business, and TiVo shareholders will own approximately 53.5 per cent.
TiVo say the merger is targeting about $50 million in cost-saving synergies. Tivo’s shareholders gain a 15 per cent premium on the company’s 90-day volume-weighted share price.
TiVo merged with Rovi Corp back in 2016 and has since made it clear that it would split the company in order to make use of its IP and patent library.
“This transaction combines two technology pioneers who have shaped how millions of consumers access and experience entertainment content, and whose innovations are found in billions of devices around the world. Serving hundreds of businesses ranging from content providers to consumer electronics and automotive manufacturers, the combined entity will provide an amazing entertainment platform for tens of millions of individual consumers and create a powerful platform for the discovery, delivery, and monetisation of content,” said a joint statement.
“Additionally, the combination will create an intellectual property licensing platform that spans a number of the largest addressable markets in entertainment content, consumer electronics, and semiconductors. With more than 10,000 patents and applications between the two companies and minimal licensee overlap, the combined IP business will be one of the largest licensing companies in the world. Further, the combined business will benefit from greater research and development capabilities, as well as customer diversification,” the statement continued.