One NASDAQ-listed firm buying another as voice and language solutions provider Nuance this morning announced that it has agreed to acquire San Jose, California-based Ditech Networks (Ditech) for $1.45 per share in cash, representing a total value of approximately $22.5 million.
That purchase price is net of Ditech’s cash as of the signing date, and is almost exactly the company’s market capitalization at the last market close.
The transaction is expected to close late in 2012.
Ditech is a relatively old company whose voice solutions are typically deployed in wireline, mobile and VoIP carrier networks across the globe. Its customers include Verizon, Sprint/Nextel, AT&T, Telus and West Corporation.
Nuance says it was particularly interested in getting its hands on Ditech’s Voice Quality Assurance (VQA) technology and PhoneTag voicemail-to-text services, which it will use to enhance its own portfolio of mobile and enterprise voice offerings.
More specifically, Ditech’s PhoneTag service will boost Nuance’s Dragon Voice to Text Services business by adding customers and ‘complementary technologies’.
In its latest quarterly earnings report, Ditech said it booked $3.5 million in revenue during the three-month period ended July 31, 2012. GAAP net loss for the quarter was $3.2 million or $0.12 per share.