The merger, initially announced at the end of 2019, will see the new company adopt the Xperi name, but continue to sell products under the TiVo branding while Xperi’s DTS, HD Radio and IMAX Enhanced brands will also remain intact. Between them, Xperi and TiVo own more than 10,000 patents and applications, with “minimal overlap.”
TiVo shareholders will be in the majority at 53.5% with Xperi shareholders owning 46.5% of the new business.
The company promises that it will “combine Xperi Corporation’s leading product offerings in the home, auto and mobile device ecosystems with TiVo Corporation’s best-in-class content aggregation, discovery and recommendation engines – creating unique opportunities for content providers, consumer electronics manufacturers and automotive makers.”
The deal also scraps TiVo’s earlier announced move to split its product and licencing divisions into two separate companies.
Jon Kirchner, Chief Executive Officer of Xperi, said: “We are proud of the incredible resilience shown by our teams to close this transaction as planned during these challenging times. We are excited about the opportunities ahead for the combined company to serve our customers, while continuing to deliver long-term cash flow and value to our shareholders.”
Kirchner will serve as the CEO while TiVo CEO Dave Shull will take up the role of strategic advisor. Xperi CFO Robert Andersen will continue in this role. The company’s board will have seven directors, with three appointed by each company.
Kirchner concluded: “With this combination, we are better positioned to transform the entertainment experience across the home, auto and mobile markets with smarter technologies that enable extraordinary experiences. With the combined expertise of our innovative R&D teams and a broader market TAM, we will be well positioned to achieve even better patent monetisation outcomes, greater cash flow generation and long-term value creation.”
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