Tech Dealmaker Awards

In April 2007, Nuance Communications Inc., based in Burlington, acquired California-based BeVocal Inc., which develops software to recognize voice commands in customer-service communications. The acquisition price included 8.3 million shares of Nuance stock in addition to a $15 million cash payment, according to reports.

Paul Ricci, chairman and CEO of Nuance, said at the time that Mountain View-based BeVocal’s intellectual property, solutions expertise and established carrier relationships would expand Nuance’s ability to serve this growing market. Of particular interest to Nuance was BeVocal’s solution set for mobile customer life-cycle management, the Beyond Suite, and a range of premium services, the VoComm Suite, for the mobile consumer.

Under the terms of the agreement, total consideration was approximately $140 million, net of BeVocal’s cash and a closing price of Nuance stock at $14.98 per share. The consideration comprised approximately 8.3 million shares of Nuance common stock and a net cash payment of approximately $15 million. Terms also included the potential for additional cash consideration of up to $60 million in the form of an earnout, payable 18-months after closing and based on the business achieving performance targets. The acquisition was approved by both companies’ boards of directors.

Nuance has reported it expects the acquisition to add between $21 million and $23 million in revenue in 2007.

— Bridget Botelho is a freelance writer in Providence, R.I.

Category

Top Software/Services M&A Deals Buy Side

The Deal

Nuance Communications Inc. bought California voice recognition firm BeVocal Inc. for approximately $140 million.

Key Executives

Paul Ricci, chairman, CEO; James Arnold, senior vice president, CFO; Rich Palmer, senior vice president of corporate development.

Deal advisers

Legal: Davis Polk & Wardwell; Wilson, Sonsini, Goodrich & Rosati.
Financial: Goldman, Sachs & Co.; Thomas Weisel Partners Group Inc.; Arrowpath Venture Capital; Mayfield Fund; Technology Crossover Ventures; Trans Cosmos USA Inc.; U.S. Venture Partners; Western Technology Investment.

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