Nuance Communications Inc. (NUAN) Acquires Tweddle Connect For $80 Million
Nuance Communications Inc. (NASDAQ:NUAN) has announced that they have acquired Tweddle Connect from Tweddle Group for $80 million in cash. Tweddle is a leading international automotive communications and publishing solutions firm that works closely with clients to achieve a competitive advantage through information development, management, and delivery. Nuance knows that connected cars will be a huge market in the near future, which is why they acquired Tweddle Connect.
Tweddle Connect is an app and content service delivery platform that can be used for in-car infotainment systems including the Toyota Entune and Lexus Enform App Suite. Tweddle Connect can connect to third-party apps like iHeart Radio, OpenTable, Pandora, and Bing. Tweddle Connect can be connected to Nuance’s automotive-grade voice platform Dragon Drive.
Tweddle Connect is an application and content service delivery platform for in-car infotainment systems, including the acclaimed Toyota Entune and Lexus Enform App Suite. Tweddle Connect aggregates popular third-party applications and content, such as Bing, iHeart Radio, OpenTable and Pandora, and delivers it safely and securely into the driving environment. The combination of Dragon Drive, Nuance’s world-class automotive-grade voice platform, and Tweddle Connect provides automakers with a single, powerful set of services to create branded personal assistant experiences for a safer, smarter connected car.
“We see explosive growth in the connected car market, and there is clear demand from automakers to deliver safer and more intuitive access to the content and apps that people know and love,” stated Nuance Mobile EVP and general manager Michael Thompson. “The strategic combination of Nuance and Tweddle Connect will greatly improve the ability to bring an important category of content – third party applications and web services – into connected car systems. With this acquisition, Nuance is leveraging an opportunity to increase the value and usability of connected car systems, while accelerating Nuance’s ability to give automakers the elements needed for branded, differentiated connected car experiences.”
There are over 70 million cars and 50 portable navigation systems that are compatible with Nuance’s speech technologies. Nuance’s voice, text-to-speech, and natural language solutions are used in Audi, BMW, Chrysler, Ford, GM, Hyundai, and Toyota vehicles.
The deal is expected to close in Q3 this year. Tweddle Group is expected to continue running their business as usual while Nuance acquires Tweddle Connect’s existing revenue streams. Nuance is expecting that the acquisition will generate around $25 million in 2014 revenues.