Rovi to Acquire Veveo for $62 Million
SANTA CLARA, CALIF. and ANDOVER, MASS.—Rovi Corp. announced it has entered into a definitive agreement to acquire Veveo, Inc., a provider of intuitive and personalized entertainment discovery solutions based in Andover. 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 personalization and contextual search tools with Rovi’s search and recommendation engine and metadata to create a differentiated entertainment discovery solution. Veveo’s technologies include proprietary, semantic technologies and natural-language controls that enable the implementation of intuitive search and recommendation interfaces operated by voice-based conversational commands and powered by an engine that continually learns and adapts to the needs and tastes of the individual viewer. By helping to drive contextual and personalized entertainment search and recommendations, Veveo’s capabilities simplify the process of connecting consumers to the TV programming and movies that are most relevant to them at any given moment across a range of devices. Veveo solutions have been adopted by leading device manufacturers and Tier-1 service providers. The company has more than 80 patent applications filed and 50 patents granted to date.
Rovi’s search and recommendation capabilities are supported by its rich metadata offering, which includes detailed information and professional editorial on millions of movies, TV shows, sports programming, music, games, and books. Rovi continues to expand the reach of its metadata, which currently spans 55 countries. The addition of Veveo’s personalization capabilities and contextual search and natural language expertise will help further differentiate core Rovi discovery capabilities, and enhance Rovi’s ability to drive a compelling next-generation digital entertainment discovery solution for multiple-system operators (MSOs), device manufacturers and social media companies.
“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.”
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 three to six cents. 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.