TiVo acquired by Rovi for a staggering $1.1 billion

TiVo, the company that pioneered the DVR industry, has been acquired by Rovi for $1.1 billion in cash and stock.

It was announced on Friday that Rovi – a company specializing in discovery software for entertainment platforms – would be purchasing leading DVR brand TiVo for $1.1 billion with the assets being a mix of cash and stock. The deal is still subject to standard regulatory approval, but the boards of both companies have already approved the transaction, and the newly merged entity will operate under the TiVo name and be led by CEO Tom Carson.

“The combined capabilities of TiVo and Rovi place us in a tremendous position to extend services across platforms and to a customer base that includes traditional, over-the-top and emerging players across the globe,” Carson said in a statement. “By working together, Rovi and TiVo will revolutionize how consumers experience media and entertainment and at the same time build value for our stockholders.”

“This transaction is the culmination of those efforts and the logical next step for TiVo,” said Naveen Chopra, interim CEO and CFO of TiVo. “In joining forces with Rovi, our customers, employees and stockholders will benefit from being part of a more diversified industry leader with significantly greater market opportunities.”

The merger comes as a bit of a surprise to industry observers as TiVo is currently enjoying a subscription growth spurt. The company announced earlier this month that its subscriptions have grown by approximately 1.5 million, or 27 percent, since Jan. 31, 2015.

The merger is expected to close by the third quarter of 2016.