Time Warner/AOL Sells Mobile Software Firm Tegic To Nuance For $265 Million

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AOL has sold off Tegic, the mobile software firm that was a pioneer with T9 predictive text input software, to speech and imaging technology company Nuance Communications, for a total price of about $265 million. AOL acquired Tegic in 1999, right before the Seattle-based software firm was supposed to do an IPO.

This is Nuance’s second mobile-related acquisition recently: last month it bought VoiceSignal, another company specialized in voice technology and software, for $293 million. The T9 software will merge with Nuance’s portfolio of voice-enabled applications for device control, mobile search, e-mail and text messaging….the two companies have been working together since 2005. The deal is expected to close in Q4.

In its fiscal year 2008, Nuance expects Tegic to contribute between $45 million and $48 million in GAAP revenue and a GAAP loss between $0.12 and $0.13 per share. The combination is expected to generate approximately $8 million to $10 million in cost synergies in fiscal year 2008, it said.

For AOL on the mobile side, “this sale also lets us focus our mobile business on building strong consumer-based, ad-supported mobile experiences,” said AOL Randy Falco in the statement. More details in the release.

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Marah Marie

I wrote about the AOL Haier Media Player, which uses Tegic's embedded technology, after it premiered at the CES show earlier this year.

Now that Tegic has been sold by AOL to Nuance, will AOL retain the license to use Tegic's technology for the Media Player, or is that deal off the table now? I would like to write an update to the original article, so any answers are really appreciated.

My article about the Haier Media Player using Tegic technology is at:


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