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Tivo to acquire cloud-based content discovery service Digitalsmiths for $135 mn
MUMBAI: Tivo, which offers DVRs in the US, has announced that it will acquire Digitalsmiths, a cloud-based content discovery and recommendation service for television.
Under the terms of the deal, Tivo will pay $135 million in cash, subject to a working capital adjustment. The transaction, which is subject to customary closing conditions, is expected to close in the first quarter of fiscal 2015.
Digitalsmiths offers personalised 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.
Digitalsmiths currently works with 46 blue‐chip U.S. and international service providers including seven of the top 10 Pay-TV operators in the US, content providers and consumer electronics manufacturers.
Tivo CEO, president Tom Rogers said, “The Digitalsmiths acquisition opens new opportunities to commercialise 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. Additionally, Digitalsmiths contributes expertise, data opportunities, and approaches that complement and extend TiVo’s extensive work in advanced television to customers seeking search, recommendations, and portability. 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 CEO, co-founder Ben Weinberger said, “The Digitalsmiths team is excited to be part of Tivo. Both Digitalsmiths and TiVo share an acute focus to improve the consumers’ viewing experience, and we understand the importance of the ’service’ or ’cloud’ to achieve this goal through next generation personalized video discovery solutions. I look forward to working as part of the Tivo team to provide a best-in-class product set to service providers, consumer electronics manufacturer’s and content providers.“
Digitalsmiths COO, CTO, co-founder Matt Berry said, “Tivo values our core mission of providing superior personalised video discovery experiences for our customers and partners. Tivo’s acquisition of Digitalsmiths underscores the robust technology and deep customer base Digitalsmiths powers. We are confident joining forces with Tivo profoundly enhances our ability to seamlessly deliver industry leading video discovery solutions that drive superior customer satisfaction and better usage metrics for video services.”
Separately, TiVo announced that it has increased its current stock repurchase authorisation by $100 million, giving the company approximately $186 million of unused repurchase capacity as of the current date. In conjunction with this increased authorisation, TiVo intends to repurchase $100 million during the first quarter of fiscal 2015.