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Unedited press release follows:
Rovi to Acquire Veveo, Inc., and Combine Innovative Search and Recommendation Tools to Create Truly Differentiated Entertainment Discovery Solution
• Combines Veveo’s unique personalization and contextual search tools with Rovi’s robust search and recommendation engine and extensive metadata
• Enables faster, more meaningful and simplified entertainment search and recommendation service for MSOs, device manufacturers and social media companies
• Brings strong customer relationships and adds Veveo’s growing intellectual property portfolio to Rovi’s sizeable portfolio of discovery-related IP
• Accelerates Rovi’s cloud-based guidance strategy and complements the company’s advertising and analytics offerings
• Transaction expected to be accretive to Rovi in fiscal 2015
Rovi Corporation (NASDAQ: ROVI), a global leader in entertainment discovery, today announced it has entered into a definitive agreement to acquire Veveo, Inc., a provider of intuitive and personalized entertainment discovery solutions based in Andover, Massachusetts. 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 robust search and recommendation engine and metadata to create a truly differentiated entertainment discovery solution. Veveo’s pioneering technologies include proprietary, Knowledge Graph driven 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.”
“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.
Veveo is a leading provider of semantic technologies to bridge the usability gap in connected devices and applications with intelligent search, discovery and personalization solutions. With tens of millions of deployments worldwide through leading device OEMs and Tier-1 service providers, Veveo is redefining how users experience connected devices and applications in natural and intuitive ways. Based on the company’s patented Smart Knowledge Platform, Veveo products enable advanced solutions for search, recommendation, discovery and navigation that offer intelligent, intuitive and efficient usability. These technologies further enable the implementation of intelligent conversational interfaces to bridge the gap in usability for connected devices and applications with natural language and speech-based interfaces.
Veveo’s semantic solutions are designed to deliver rich, hyper-personalized user experiences that anticipate user intent, driving higher engagement, content consumption, and monetization of products and services for device vendors, service providers and enterprises, across platforms of smartphones, tablets, TVs, and set-top boxes. Founded in 2004, Veveo is based in Boston, MA and has a growing intellectual property portfolio.
Rovi is leading the way to a more personalized entertainment experience. The company’s pioneering guides, data, and recommendations continue to drive program search and navigation on millions of devices on a global basis. With a new generation of cloud-based discovery capabilities and emerging solutions for interactive advertising and audience analytics, Rovi is enabling premier brands worldwide to increase their reach, drive consumer satisfaction and create a better entertainment experience across multiple screens. Rovi holds over 5,000 issued or pending patents worldwide and is headquartered in Santa Clara, California. Discover more about Rovi at Rovicorp.com.