TiVo Corp., the inventor of the digital video recorder, and technology licensor Xperi Corp. have agreed to merge in an all-stock transaction valued at $1.21 billion.

The deal values TiVo at a 21% premium to Wednesday’s closing price. TiVo shareholders would own 54% of the combined company, which would be run by Xperi Chief Executive Officer Jon Kirchner, according to a statement on Thursday, confirming an earlier Bloomberg News report.

Combining the companies could create at least $50 million in savings, according to the statement. The transaction would also put on hold TiVo’s announced plan to spin off its intellectual property unit early next year, one of the people familiar with the matter has said.

San Carlos, California-based TiVo’s name became a verb in the 2000s, when it pioneered set-top hardware that let people record television shows and skip commercials. It lost ground in recent years to rivals including Roku Inc. and Apple Inc. that introduced set-top boxes that were cheaper and easier to use.

The company, which merged with rival Rovi Corp. in 2016, retained a financial adviser last year to explore strategic alternatives.

In May, it announced plans to split in two by spinning off its patent portfolio in the first half of 2020. That would have left TiVo with its product division, which offers streaming devices, digital video recording and software services.

Xperi, based in San Jose, California, licenses software that is used for playing back high-definition sounds on consumer electronics and imaging software that enables mobile-phone cameras to recognize faces, according to its website.

The company also licenses designs for the semiconductor industry.

Xperi’s customers include include Samsung Electronics Co., which was responsible for about 38% of its revenue in 2018, according to its annual report.