Xperi board approves IP-product business split

TiVo owner Xperi has approved the separation of its business into two entities.

Xperi, which acquired Norwegian streaming firm Vewd earlier this summer, had previously announced plans to separate its IP and product businesses into two standalone units. This move is now on the verge of completion, with the company announcing formal approval from the board on August 29. 

The separation is subject to certain customary conditions, including final approval and effectiveness of the Form 10 registration statement. No stockholder approval of the distribution is required. 

The two companies will begin trading on the New York Stock Exchange upon the completion of the separation. The product business, which houses TiVo, IMAX Enhanced, HD Radio and DTS, will operate under the Xperi banner (trading as XPER). The remaining IP licencing business, which owns more than 10,000 patents and applications and will be run by Xperi veteran Paul E. Davis, will be named Adeia (trading as ADEA).

The separation will be effected by means of a pro rata distribution of Xperi shares of common stock to existing holders of Xperi common stock. 

Jon Kirchner, chief executive officer of Xperi, said: ​“Today represents an important and exciting milestone in moving toward completion of our planned separation. The realisation of this strategic separation is the result of years of effort to transform and to better position two large scale businesses to capture growth in the next industry transitions and unlock meaningful shareholder value.”

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