NEW YORK (AP) — Digital TV listing company Rovi is buying TiVo in a cash-and-stock deal valued at about $1.1 billion.

Rovi Corp. said Friday that it will pay $10.70 in cash and stock for each TiVo Inc. share. Rovi will pay $2.75 per share in cash, or about $277 million. The rest, $7.95 per share, will be paid in stock.

Once the deal closes, the combined business will use the TiVo name. TiVo is a digital video recording company.

Rovi CEO Tom Carson will serve as CEO of the new company. The executive said in a written statement on Friday that the buyout will help to extend services across platforms and expand its customer base. The transaction will add more than 10 million TiVo-served households to Rovi's current customer base of about 18 million households using its guides globally.

The companies anticipate at least $100 million in annual cost savings. The transaction is expected to add to Rovi's adjusted earnings per share within the first year after closing.

Both companies' boards have approved the deal, which is targeted to close in the third quarter. It still needs approval from both companies' shareholders.

Shares of TiVo, based in San Jose, California, added 17 cents to $9.59 in premarket trading. Shares of Rovi, based in Santa Clara, California, surged $1.15, or 6.6 percent, to $18.50.