Nuance Communications is reportedly in talks with multiple agencies and private equity firms for a possible sale of the company. The list of prospective buyers includes the South Korean giant Samsung, who is already using a number of products from Nuance in its devices. However, the report adds that it’s not confirmed whether these talks will lead to a final sale of the company.
Nuance is a multinational company based in Burlington, Massachusetts specializing in speech and imaging products. Nuance as a company is a result of a combination of companies like Visioneer and ScanSoft. Once these companies were merged in 2005, it took the name Nuance. Since then, the company has focused on developing various voice based technology products for smartphones, tablets, televisions and GPS navigation units. One of the most famous products from the company is its Dragon Voice Recognition Software.
Many great companies like Samsung and Apple are using Nuance’s products in their devices. Other popular names include Amazon, Ford, HTC and Subaru. Even PC makers are making use of the company’s technology as Dell recently announced that it would include the Dragon Assistant in its upcoming PC models.
Nuance’s Voice recognition technology is so famous that it is currently used by Apple as well as Samsung in its digital assistants. In fact, the company recently announced that it would integrate its technology deeper into Samsung’s S Voice as well as its wearable products.
With this advanced technology, many companies would have interest in buying Nuance. Apple could be one of the prospective buyers along with companies like Samsung. Both of them rely on Nuance’s technology, so purchasing the company could be a logical option. However, there could be other interested parties too. For example, Amazon who is expected to release its first smartphone tomorrow could benefit a lot from Nuance’s technology. So, any of these companies could come ahead and strike a deal with Nuance.
Also, there are other signs which could hint at a possible sale of the company. For example, according to the WSJ, the famous activist investor Carl Icahn is Nuance’s largest stakeholder. Given that Icahn has attempted to make changes in companies like Yahoo!, Blockbuster and Time Warner in the past, it’s quite possible that Nuance may sell itself completely or at least partly in the near future.
Despite having business with big names like Samsung and Apple, Nuance has been making losses for six straight quarters. So, the company could be looking to sell some part of it to come back to profitability.
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