Rovi Corporation has announced that it has entered into a definitive agreement to acquire Veveo, a provider of intuitive and personalized entertainment discovery solutions. Under the terms of the agreement, Rovi will pay approximately $62 million in net cash at the closing and up to $7 million in additional cash payments based on achievement of certain agreed-upon milestones.
The transaction combines Veveo’s personalisation and contextual search tools with Rovi’s robust search and recommendation engine and metadata to create a what Rovi says is a truly differentiated entertainment discovery solution, said Rovi.
“The Veveo acquisition will deepen Rovi’s cloud-based search and recommendation capabilities, enhance our entertainment metadata and guide solutions with next-generation semantic capabilities, and help us grow our advertising and analytics offerings,” said Tom Carson, President and CEO of Rovi. “Veveo has developed a great set of technologies and is a clear strategic fit for where we are going as a company. This transaction positions us for leadership in search and recommendation, which is consistent with our stated focus on establishing leadership in targeted market segments. Rovi is enhancing its capabilities to deliver more and better discovery solutions, as our customers look to personalize the consumer entertainment experience across multiple screens and platforms.”
“MSOs, device manufacturers, and social media companies recognize the value and opportunity in taking today’s static discovery and recommendation engines to the next level by incorporating intelligent data, contextual search, predictive analytics, semantic technologies and natural language controls,” said Ajit Rajasekharan, co-founder of Veveo. “By combining our leading offerings, Rovi and Veveo are in a prime position to help our customers differentiate through truly intelligent and personalized entertainment discovery.”
Rovi also updated the Company’s business outlook for fiscal year 2014 by announcing that the acquisition would likely lower Adjusted Pro Forma Income Per Common Share in fiscal 2014 by $0.03 to $0.06. The Veveo business is expected to contribute double digit revenue growth and be accretive in fiscal year 2015. Rovi plans to provide additional details on the transaction when it reports its first quarter fiscal year 2014 results.
The acquisition is subject to customary closing conditions and is expected to close shortly.
DTG Staff | 25.02.2014