Rovi To Buy Veveo

(RTTNews) - Rovi Corp. (ROVI) said Monday that it has agreed to buy Veveo, Inc., a provider of intuitive and personalized entertainment discovery solutions based in Andover, Massachusetts.

Rovi will pay about $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 deal 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.

The acquisition is expected to close shortly.

Rovi also updated its business outlook for fiscal year 2014 by announcing that the acquisition would likely lower adjusted Pro Forma income per 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.