Entertainment tech company Rovi Corp. said this morning that it has completed a deal to acquire DVR maker TiVo for $1.1 billion in cash and stock. The new $3 billion aggregate, which will take the TiVo name, is expected to generate “saving synergies” of $100 million in the first year, according to an announcement.

“The combined capabilities of TiVo and Rovi place us in a tremendous position to extend services across platforms and to a customer base that includes traditional, over-the-top and emerging players across the globe,” Rovi CEO Tom Carson, who will head the new company, said in the announcement. “By working together, Rovi and TiVo will revolutionize how consumers experience media and entertainment and at the same time build value for our stockholders.”

TiVoSan Carlos, CA-based Rovi will pay $10.70 per share in cash and stock. “The new company combines two media and entertainment technology innovators with complementary products, services, and intellectual property assets and a common mission to write the next chapter of the consumer entertainment experience,” according to the announcement. Investors will get $2.75 per share in cash, or about $277 million. That’s a 40% premium over TiVo’s closing price of $7.66 on March 23, the day before reports of the imminent merger began appearing. The balance of the $7.95 per share will be paid in common stock shares of a new holding company combining Rovi and TiVo.

“In joining forces with Rovi, our customers, employees and stockholders will benefit from being part of a more diversified industry leader with significantly greater market opportunities,” TiVo Interim CEO and CFO Naveen Chopra said in Friday’s announcement. “Our combination creates a more influential global player with a commitment to product innovation, which will be incredibly well positioned to redefine television.”

Shares of Rovi were up 3.7% to $17.99 in premarket trading. TiVo shares closed Thursday up 2% to $9.42. As reported earlier by Deadline, the DVR company has been struggling to find its place in the fast-changing video business. Its products have been too expensive for most viewers. Although they blend traditional cable or satellite video with Internet services such as Netflix, they can’t take advantage of two-way traditional pay TV services such as video on demand.

“Rovi’s acquisition of TiVo, with its innovative products, talented team and substantial intellectual property portfolio, strengthens Rovi’s position as a global leader in media discovery, metadata, analytics, and IP licensing,” said Rovi CEO Tom Carson. “It’s an exciting time as the media and entertainment landscape undergoes a significant evolution. The combined capabilities of TiVo and Rovi place us in a tremendous position to extend services across platforms and to a customer base that includes traditional, over-the-top and emerging players across the globe.”

He added: “By working together, Rovi and TiVo will revolutionize how consumers experience media and entertainment and at the same time build value for our stockholders.”

The deal is expected to close in the third quarter, following shareholder approval and antitrust clearance.