TiVo To Acquire Ad-Research Firm TRA For $20 Million

TRA Uses Set-Top Box Data from 1.5 Million Households to Analyze Viewing

TiVo has agreed to acquire TRA, a research company that correlates household purchases with TV viewing, for $20 million.

TRA analyzes TV viewing based on set-top box data from 1.5 million households, most of which are through TiVo's DVRs through a previous deal. TiVo will rename the company as TiVo Research and Analytics (TRA). The deal is subject to customary closing conditions.

New York-based TRA has more than 45 brand clients and 27 network clients including CBS, A+E Networks, ION Media, Procter & Gamble, Oscar Mayer and Starcom MediaVest Group, among others. The company has 25 employees.

"TRA has proven its platform can determine the effectiveness of TV advertising by connecting the exposure of ads to actual purchases, helping advertisers identify the right audience and get the most out of their ad dollars," TiVo president and CEO Tom Rogers said in a statement. "TRA has driven a substantial client list of advertisers, agencies and networks with this proposition. With this new level of unique audience insights and analytics, TiVo will be able to provide insights nobody else has in an industry increasingly seeking alternative ways to measure audience behavior accurately while increasing efficiencies in media spending."

Ad agency Starcom MediaVest Group has used TRA's data for three years to "bring our clients the most efficient and effective television investment possible," said Laura Desmond, global CEO of SMG, in a statement.

"At CBS, we have used the TRA Media TRAnalytics platform since its inception as the solution to demonstrate increased accountability in television. We are pleased to see these two leading innovators come together to continue their efforts to connect viewing with purchases and prove the ROI of television," CBS chief research officer David Poltrack commented.

TiVo expects the deal for TRA to close this month. TiVo expects the transaction will be accretive to adjusted income before interest income and expense, provision for income taxes and depreciation and amortization in its next fiscal year if planned synergies are realized.