TiVo merges with technology licensor Xperi in $3 billion deal
0Reported today on TechCrunch
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TiVo merges with technology licensor Xperi in $3 billion deal
Earlier this year, TiVo said it was preparing to split itself into two - a product and IP business - in order to make itself more attractive to buyers. Today, the company announced those plans have been put on hold as it has instead merged with technology licensor Xperi Corporation, in a $3 billion deal. The merger will see each company's IP licensing and product businesses integrated with one another, then operated as separate units. This will allow the newly combined company to sell off one of those units to a strategic buyer at a later date.
Bloomberg previously reported on the companies' planned merger.
The combined company will be called Xperi and will be headquartered in San Jose, California. It will continue to sell entertainment services under the TiVo brand, alongside Xperi's own premium DTS, HD Radio, and IMAX Enhanced brands.
Following the completion of the transaction, Xperi's CEO Jon Kirchner will become the CEO of the parent company and Xperi's CFO Robert Anderson will continue to serve in that role for the merged company. TiVo's CEO, David Shull, meanwhile, will continue as a strategic investor to ensure the transaction completes. The new parent company's board will include Kirchner plus 6 directors appointed by Xperi and TiVo, who each appoint 3 of the 6.
Shares of TiVo and Xperi stockholders will be converted to shares of the new parent company based on a fixed ratio of 0.4555 Xperi share per existing TiVo share. When the deal completes, Xperi stockholders will own 46.5% of the new company and TiVo stockholders will own approximately 53.5%, on a fully diluted basis.
Each company's debt will also be refinanced on a combined basis (totaling $1.1 billion) by Ba