Speech solutions provider Nuance Communications has announced today its intentions to acquire Zi Corporation, a mobile solutions provider, for $0.69 per share in a cash and stock transaction.

 

Together the companies will combine their expertise in speech input and mobile search to make it even easier for people to interact with mobile devices, applications and services.

 

“We believe the combination of Nuance (News - Alert) and Zi will deliver additional value to our collective stakeholders and accelerate innovation for our customers and prospects,” said Steve Chambers, president, Mobile-Enterprise & Consumer Services, Nuance.

 

“The two companies share a commitment to advance a portfolio of intelligent input and search capabilities on mobile devices in more than 80 languages and dialects to best serve our global customers and partners.”

 

The transaction, which is expected to close in Nuance’s third fiscal quarter 2009, is subject to customary closing conditions and Zi shareholder approval. Set at approximately $35 million, the transactions include both $17 million in cash and $18 million in Nuance common stock.

 

Also, the company noted that, "Zi shareholders will receive US$0.34 in cash and, based on Nuance’s ten day volume weighted average trading price on the date hereof, approximately .04 shares of Nuance common stock for each share of Zi common stock that they own."

 

Zi’s solutions offer a way for users to get the most out of their devices and help operators drive revenues.

 

Nuance, who is also focused on the use of technologies to improve the way users communicate and make use of devices, will be able to improve its portfolio of touch and speech interfaces and address the need for text input technology.

 

The company said this deal would particularly help their partners and customers in the Asia-Pacific.

 

“Joining with Nuance delivers significant and immediate value to our shareholders. We expect this transaction to benefit our customers by providing them access to Nuance’s robust product line and technical expertise across more language markets than ever before,” said Milos Djokovic, chief executive officer, Zi Corporation (News - Alert).

 

 

Earlier this week, Nuance announced  that recent trials and deployments of the their Mobile Care product has shown that is can reduce the number of calls directed to live agent by over sixty percent because it gives users the ability to self-solve simple problems in customer care and billing.