Nuance has announced this morning that they are acquiring Ditech Networks for $1.45 per share in cash, which puts the total value at $22.5 million. The purchase price is net of Ditech’s cash as of the signing date and was almost exactly the company’s market cap at the last market close. Ditech’s voice solutions are generally deployed through wireline, mobile, and VoIP carrier networks.
Customers include Verizon Wireless, Sprint/Nextel, AT&T, Telus, and West Corporation. Nuance is most interested in Ditech’s Voice Quality Assurance (VQA) technology and PhoneTag voicemail-to-text services. Ditech will use VQA and PhoneTag to enhance their own portfolio of mobile and enterprise voice offerings.
Ditech’s PhoneTag service will be boosting Nuance’s Dragon Voice To Text Services by adding customers and “complementary technologies.” Ditech booked around $3.5 million in revenue during the three-month period ended July 31, 2012. GAAP net loss for the quarter was $3.2 million. The transaction is expected to close in late 2012.