(Reuters) - Digital television recorder maker TiVo Inc (TIVO.O) said it will buy advertisement research company TRA Inc for about $20 million to beef up its presence in the television analytics market.
TiVo expects the deal to close this month and add to its adjusted earnings before interest, taxes, depreciation, and amortization in its next fiscal year.
The new unit, which will be known as TiVo Research and Analytics, will add Internet-level measurement and insights to the TV advertising industry, the company said.
TRA’s technology helps advertisers and networks measure the effectiveness of advertisements on television. This makes it possible for advertisers to tell which networks are most effective at selling products like beer, cookies or cars.
TiVo sells set-top boxes that record and play back TV programs. It also licenses technology to cable TV operators including Charter Communications Inc (CHTR.O), DirecTV DTV.O and Virgin Media Inc VMED.O.
The company also provides interactive advertising solutions and audience research and measurement ratings services to the television industry.
The Alviso, California-based company’s shares, which have lost almost a third of their value in the last five months, closed at $7.93 on the Nasdaq on Monday.
Reporting By Aurindom Mukherjee and Sakthi Prasad in Bangalore; Editing by Jane Merriman and Joyjeet Das