Nuance Communications, Inc. (NASDAQ: NUAN) announced it has signed an agreement to acquire Ditech Networks, Inc. (NASDAQ: DITC). Ditech Networks’ voice technologies, including the company’s Voice Quality Assurance (VQA) technology and PhoneTag voicemail-to-text services, will further enhance Nuance’s portfolio of mobile and enterprise voice offerings.
As voice is increasingly integrated with a broad array of products and services, people expect seamless interactions that simply work anytime and anywhere. Ditech Networks’ portfolio of voice technologies will help Nuance continue its pace-setting innovations for carriers, consumers and enterprises across an array of products and services. In particular, Ditech Networks’ PhoneTag service will enhance Nuance’s Dragon Voice to Text Services business by adding important customers and complementary technologies, and further advance innovation supporting Nuance’s highly secure, on-premise voice to text platform.
“The world’s most innovative carriers and unified communications providers work with Nuance to take advantage of the revolution in voice recognition, and nowhere is this more evident than in our voicemail to text and call completion businesses, where billions of calls are converted into easily read text and email messages – a powerful solution for today’s messaging-centric world,” said John Pollard, Vice President and General Manager, Voice to Text Services, Nuance Mobile. “Acquiring Ditech Networks’ voice technologies will help Nuance continue to drive these next-generation services.”
Nuance has agreed to acquire Ditech Networks for $1.45 per share in cash, representing a total enterprise value of approximately $22.5 million, net of Ditech Networks’ cash as of the signing date. The transaction has been unanimously approved by the Boards of Directors of each company. The transaction is expected to close late in 2012, subject to Ditech Networks stockholder approval and other closing conditions.
“Ditech Networks’ voice technologies combined with Nuance’s voice and language understanding portfolio is an exciting proposition for our combined customer and partner base, while providing a unique opportunity to extend the value and benefits of our technologies into new markets,” said Ken Naumann, CEO, Ditech Networks.