Nuance Communications, a speech recognition software provider, today announced the acquisition of Loquendo, which is a subsidiary of Telecom Italia. Nuance is the provider of the popular Dragon Naturally Speaking speech recognition software. Loquendo has established text-to-speech, speech recognition, and voice biometrics solutions that are used in more than 20 million devices worldwide. Nuance expects to advance the proliferation of voice enabled solutions while accelerating development of more natural interactions between contact centers and devices.

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A Tagteam in Speech Recognition

Nuance and Loquendo mate very well in terms of complementary portfolios. Both offer speech recognition technologies and are highly experienced in this field. The acquisition should push Nuance’s technological portfolio further into other device markets while increasing the companies competitiveness in foreign languages. Loquendo has products in 32 different languages and experience in the European market, strengthening Nuance’s international position.

Steve Chambers, Nuance’s chief marketing officer, found the Loquendo acquisition pivotal in expanding its reach:

“The penetration of Loquendo’s offerings and the company’s positive industry recognition will serve as a catalyst in expanding our market reach and our voice and language portfolio. Together, we will provide a range of best-of-breed solutions, delivering natural, conversational interactions across a number of growing segments that will initially include enterprise, mobile and automotive – with a significant opportunity to expand these offerings into areas such as Europe and Latin America.”

Davide Franco, Loquendo’s CEO, also expounded on the benefits of integrating the two companies:

“The adoption of speech technology is being driven by the increasing comfort in the use of speech by consumers, resulting in the demand for fully voice-enabled experiences across many industry segments. By combining our technology and amazing employees with Nuance’s robust capabilities and market strength, we look forward to continued success with our partners and customers.”

4 Points of Growth

Nuance cites 4 key areas that it will grow through this acquisition:

1. Voice solutions for new and emerging markets – Loquendo immediately expands Nuance’s global footprint with Loquendo’s European presence. Nuance can further develop these markets through additional offerings and market entries.
2. Global customer and partner relations – Nuance will be able leverage the merged firms’ resources to better support partners and customers
3. Robust language support – Nuance will greatly improve its Latin language capabilities through Loquendo’s expertise and technology
4. Innovation – With more research facilities worldwide, an influx of new knowledge, and new teammates, the Nuance should be able to push its technology further.

Only a month has passed since Nuance acquired Webmedx, a medical transcription services provider. The company looks to be busy in expanding and strengthening its voice recognition business.

What will come of the Nuance-Loquendo acquisition? Is Nuance a big winner with this purchase? Will the deal have the purported effects? Share your thoughts in the comments below.