SOURCE: TiVo Inc.

TiVo Inc.

TiVo Inc.

May 26, 2015 16:01 ET

TiVo Acquires Cubiware to Increase International Distribution

Cubiware Solutions Currently Deployed With More Than 40 International PayTV Operators Across 25 Countries; Deal Provides Cost Effective Approach for Emerging Pay-TV Markets and Expands TiVo's Product Offerings

SAN JOSE, CA--(Marketwired - May 26, 2015) - TiVo Inc., (NASDAQ: TIVO) a leader in the advanced television entertainment market, today announced that is has acquired Cubiware, an innovative provider of cost-effective software solutions for emerging market Pay-TV operators. Cubiware will expand TiVo's international presence in 25 countries and positions TiVo to offer a broader array of compelling, cost effective solutions for Pay-TV operators across the world.

"Cubiware immediately accelerates our global Pay-TV efforts and enables us to more rapidly reach an even larger portion of the international market, which is expected to grow to more than a billion subscribers by 2020," said Tom Rogers, TiVo's President and CEO. "Cubiware's recent growth reflects its strong position in markets that are experiencing rapid pay television expansion. This product expansion complements our current international TiVo and DigitalSmiths product lines, enabling us to deliver a comprehensive portfolio of solutions for video distributors across different distribution platforms -- on premise, cloud or hybrid environments. The combination of TiVo and Cubiware is expected to enhance Cubiware's product offering with a variety of features in the future including advanced search and recommendations, OTT applications, and user interface enhancements that will further distinguish Cubiware products and accelerate customer expansion."

In addition to developing an enviable track record of delivering high quality, cost-effective solutions for Pay-TV operators, Cubiware has also established an important ecosystem of conditional access and set-top-box partners. TiVo will seek to continue expanding these relationships to serve an increasing array of international customers.

"We are very excited about the opportunities in front of us as part of TiVo, especially as many Pay-TV operators in emerging markets are looking for innovative advanced television software solutions that can be deployed on cost-effective set-top boxes and other devices," said Jakub Gorski, Cubiware's CEO and Co-founder. "Cubiware's solution is integrated with a variety of leading set-top-box providers enabling over 4 million devices in the field. Becoming part of TiVo will enable us to offer more advanced solutions to our current customers and pursue a broader set of prospects with a proposition that offers compelling functionality at a very attractive price point."

Cubiware is based in Warsaw, Poland and has relationships with approximately 40 customers across Latin America, Europe, and the Middle East and Asia, representing approximately 12 million Pay-TV subs. These include key operators like Columbus Communications (part of Cable & Wireless) and Cablemas (part of Televisa) in Latin America.

TiVo expects the deal to be accretive to Adjusted EBITDA in the current fiscal year.

About TiVo
TiVo Inc. (NASDAQ: TIVO) is a global leader in next-generation television services. With global headquarters in San Jose, CA and offices in New York, NY, Boston, MA and Durham, NC, TiVo's innovative cloud-based Software-as-a-Service solutions enable viewers to consume content across all screens in and out-of-the home. The TiVo solution provides an all-in-one approach for navigating the 'content chaos' by seamlessly combining live, recorded, on-demand and over-the-top television into one intuitive user interface. The TiVo experience provides TV viewers with simple universal search, discovery, viewing and recording from any device, creating the ultimate viewing experience. TiVo products and services are available at retail or through a growing number of pay-TV operators world-wide. TiVo's multiple subsidiary companies provide the broader television industry and consumer electronics manufacturers, cloud-based video discovery and recommendation options, interactive advertising solutions and audience research and measurement services. More information at: www.TiVo.com.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, TiVo's and Cubiware's future business and growth strategies including future penetration of existing customer subscriber bases and new customer acquisitions and financial expectations related to the Cubiware acquisition, including future revenues, margins, and Adjusted EBITDA performance as well as TiVo's expectation that the Cubiware acquisition will be accretive to the current fiscal year Adjusted EBITDA, and the amount of NOLs available to TiVo in the future from this acquisition. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in development, competitive service offerings and lack of market acceptance, our inability to achieve the synergies expected from the Cubiware acquisition, issues with the integration of Cubiware, including costs and unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, potential contractual or employment issues, as well as the other potential factors described under "Risk Factors" in the Company's public reports filed with the Securities and Exchange, including the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2015 and Current Reports on Form 8-K. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. TiVo disclaims any obligation to update these forward-looking statements.