By RTT News,
January 29, 2014, 08:50:00 AM EDT
(RTTNews.com) - TiVo Inc. ( TIVO ) said it would acquire Digitalsmiths, the Pay-TV industry's most broadly adopted cloud-based content discovery and recommendation service. As part of the deal, TiVo would pay $135 million cash for Digitalsmiths, subject to a working capital adjustment. The transaction may close in the first quarter of Fiscal 2015.
Commenting on the purchase, TiVo's Chief Executive stated, "The Digitalsmiths acquisition opens new opportunities to commercialize and deploy TiVo's cloud based services and technologies to operators, in an extremely cost effective way that can be offered either independently or in conjunction with TiVo's renowned user interface."
He continued, "Our acquisition of Digitalsmiths will expand TiVo's role with Tier-one U.S. Service Providers through its significant relationships with the 7 of the top ten 10 U.S. Pay-TV providers, which serve 64% of the country's Pay-TV households. Finally, we believe Digitalsmiths' revenue growth trajectory and attractive margin structure can help accelerate TiVo's long-term Adjusted EBITDA growth."
Digitalsmiths offers personalized video search, recommendations and browsing, social trending, and mood-based discovery which can be used to instantly connect consumers to the most relevant movies, TV shows and live events available, at any time, on any screen including set-top boxes, tablets, smart phones, computers and gaming consoles. Currently, Digitalsmiths works with 46 blue-chip U.S. and international Service Providers, including seven of the top 10 Pay-TV operators in the United States, Content Providers and Consumer Electronic Manufacturers.
Separately, TiVo announced that it has increased its stock repurchase authorization by $100 million; and also plans to buy back $100 million in the first quarter of fiscal 2015.
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