Nuance Communications has agreed to acquire AOL subsidiary Tegic Communications of Seattle in a cash deal valued at approximately $265 million, officials report.
Founded in 1995, Tegic makes predictive text input software, which is installed on more than 2.5 billion devices worldwide. The two companies have been partners since 2005.
Burlington, Mass.-based Nuance plans to add Tegic's T9 and next-generation integrated text and touch input products to its user interface platform with the aim of delivering an all-in-one interface for mobile handsets, according to officials.
In its fiscal 2008, Nuance expects Tegic to contribute between $45 million and $48 million in revenue. AOL acquired Tegic in 1999 for more than $300 million.
Read more (registration may be required).