Nuance, a ‘speech recognition and digital imaging’ software maker, is acquiring Swype Inc. for $102.5 Million, out of which $77.5 Million have already been paid. The balance will be paid 18 months after the deal is closed, say reports.
“Nuance is bulking up on the mobile front so that they can have a bigger presence on the next-generation handsets. They can’t just stand by and just stick to their core competency of being a voice recognition technology player on mobile.”, FBR Capital Markets & Co analyst Daniel Ives told Reuters.
Apparently, Nuance is trying to corner patents it thinks are important for its business, Swype acquisition being the fourth this year. Rumors suggest that Apple may, sometime in future, expand its licensing deal with Nuance – currently, Siri, the interactive voice recognition system that Apple showed off on iPhone 4S, uses Nuance.
Windows Phone and Android have their own voice recognition systems. Wonder what’d happen to Swype for Android after this deal?