Nuance Communications
United States / Canada

Communication Software and Solutions

$40,500,000

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Overview & Background

Nuance Communications, an $8bn publicly traded company, provides voice automation and authentication, speech recognition and text-to-speech conversion software for businesses. Also provides document management and conversion and optical character recognition (OCR) software. 

Nuance has historically, and continues, to employ an acquisition strategy in consolidating markets, rapidly building scale through a number of acquisitions of market leaders in a give space, completing 29 since 2006.

Nuance is specifically well positioned in the mobile text input space as a result of in-house development and acquisitions.

Positioning Process

Retained by Nuance, the buy-side work consisted of indentifying and engaging acquisition targets in consolidating sectors of Nuance expertise and then acting as an extension of the Nuance management team to negotiate and close acquisitions.

Publicly traded Zi Corporation, provider of T9 Texting solutions for Mobile phones, was identified as a strategic acquisition due to Nuance’s significant market leadership in the text-input space for mobile phones.

An acquisition of Zi Corp, and the T9 Texting solution, would position Nuance as the one-stop shop for texting solutions for handset manufacturers.

Results

Resulted in a successful identification, negotiation and acquisition of Zi Corporation for $40.5mn; providing Nuance with a dominant position as the supplier of texting solutions to the handset industry.