Voice recognition vendor Nuance buys rival to expand voice-based mobile services

Voice recognition leader Nuance Communications is snapping up a rival as part of its advancing foray into voice-enabling mobile devices and services.

Nuance announced this week it will buy VoiceSignal Technologies in a cash and stock deal estimated at about $293 million. The deal should be final in the fiscal fourth quarter, subject to regulatory approvals.

Nuance is one of the premier voice recognition software vendors, with its Dragon NaturallySpeaking application for PCs. Version 9 was released in July 2006, capable of recognizing 99% of the words spoken without requiring a script or a learning session to become familiar with a user’s speech patterns. It also provides the core technology for a variety of speech-based products aimed at mobile users, from companies such as V-Enable.

VoiceSignal’s voiceMode 2.0 was introduced a year ago , and like the Nuance software lets users give voice commands to send a text message to a specific contact, and then dictate the message by simply talking normally. The vendor also offers VSearch, which is a system that lets users work with Internet search engines via voice commands. It converts spoken search terms into text for entry, then returns the results in text on the phone’s screen. If the result includes a phone number, the user can verbally select and order the phone to dial it.

Nuance has given no indication of how or even whether it will actually make use of the VoiceSignal products and underlying technologies.

The VoiceSignal deal is the latest in Nuance’s ongoing efforts, through acquisitions and new software development, to bring more sophisticated voice recognition to smartphones, car systems, personal navigation devices and mobile services. Instead of pressing cell phone keys to message, cell phone users can simply talk to Nuance-equipped phones or to voice-enabled carrier services such as directory assistance and business yellow pages.

Late in 2006, Nuance bought MobileVoiceControl, which offered a subscription service that let cell phone users press a button and then dictate and send e-mail and text messages, search the Web, create calendar entries, and call contacts all by voice recognition.

At the start of 2007, Nuance introduced Session Initiation Protocol (SIP) support with its SpeechAttendant Internal Dialer, a product that lets users tap one key, speak the name of the person they want to call, and the dialer works with an array of third-party SIP-based IP PBXs to make the call. The dialing system acts in effect like a robot receptionist, asking incoming callers to speak the name of the person they’re trying to reach, and completing or even forwarding the call.

In April, Nuance introduced a product for directory assistance services by carriers and service providers. The voice tools answer caller queries (from fixed or mobile phones), give a list of options, and can support advertiser-supported business listings or other services.