Nuance buys BeVocal

Voice recognition software developer Nuance Communications today said it is purchasing BeVocal, a provider of self-service customer service applications, in a stock and cash deal estimated at $140 million.

Nuance will fork over 8.3 million shares for BeVocal, based on its closing stock price of $14.98 a share, and pay $15 million in cash to BeVocal’s investors with a possible $60 million additional payment in 18 months if BeVocal hits certain operational targets.

BeVocal and Nuance occupy two separate links of the voice recognition value chain, with Nuance designing and licensing the core voice recognition technology and BeVocal incorporating that technology into its customer care applications targeted specifically at wireless carriers. BeVocal names Cingular, MetroPCS, Virgin Mobile and Liberty Wireless among its customers, selling them applications such as automated phone activation.

Nuance, meanwhile, has been looking to expand beyond its core technology to sell carriers and enterprises specific applications based on voice recognition technology, said Lynda Kate Smith, Nuance vice president and general manager of the Nuance’s Care Business Unit. Nuance has bought several companies with vertical market customer care applications, and the BeVocal acquisition is a perfect fit, giving Nuance visibility into the telecom CRM space, she said. In addition, since BeVocal already licenses the Nuance core technology, integrating the company’s portfolio into Nuance’s will be simple, she said.