In an effort to practically corner the market – Nuance, the company behind the popular T9 software, and Zi Corporation, the folks behind the other text prediction technology used for instance in some Sony Ericsson phones and the Nintendo Wii, announced an agreement under which Nuance will acquire Zi for $0.69 per share in a cash and stock transaction.
From the official release:
Zi’s solutions for mobile search and text input complement Nuance’s portfolio of intuitive touch and speech interfaces that simplify and enhance the way people interact with mobile devices, applications, and services. Together, Nuance and Zi are positioned to better address the need for text input technology for customers and partners worldwide, especially in Asia-Pacific.
To put numbers in different perspective – Nuance will pay approximately $35 million for Zi, comprising approximately $17 million in cash and $18 million in Nuance common stock. Zi shareholders will receive $0.34 in cash and approximately .04 shares of Nuance common stock for each share of Zi common stock that they own — representing a premium of approximately 73% over the closing price of the common shares of Zi. The transaction is expected to close in Nuance’s third fiscal quarter 2009, subject to customary closing conditions and Zi shareholder approval.