Rovi has agreed to purchase TiVo, best known for its line of DVRs, in a cash and stock deal valued at $1.1 billion, or $10.70 per share. Rumors of a pending acquisition date back more than a month.

The combined company will adopt the iconic TiVo name and will be led by Tom Carson, Rovi's current CEO. Carson said in a statement that Rovi's acquisition of TiVo, with its innovative products, talented team and substantial intellectual property portfolio, strengthens his company's position as a global leader in media discovery, metadata, analytics and IP licensing.

Speaking of, TiVo's intellectual property portfolio is viewed by many as the motivating factor behind the acquisition.

Combined, the two companies will enjoy a war chest of more than 6,000 issued patents and pending applications. Rovi said the two have generated more than $3 billion in combined IP licensing revenues and past damage awards.

It would be easy to write this off strictly as a patent-fueled acquisition but it's worth pointing out that Rovi does actually produce a product, an interactive media guide that's currently utilized by roughly 18 million households.

Existing TiVo shareholders will receive $2.75 per share in cash with the remaining $7.95 to be paid in shares of common stock of the new company that'll own both Rovi and TiVo. Current Rovi shareholders will receive one share of the new company for each share they currently own in Rovi.

As always, the purchase is subject to customary regulatory approval. Rovi expects the deal to be finalized sometime in the third quarter of this year.