TechCrunch has received a copy of a memo indicating that Nuance, the speech and natural language technology giant that also powers Apple’s Siri voice assistant, has made another acquisition: VirtuOz, a developer of intelligent virtual assistant services for online sales, marketing and support — dubbed “Siri for the enterprise” — that was founded in France and is now co-headquartered in the Bay Area’s Emeryville.
We are still looking for
more concrete confirmation and a price for the deal, which, if it has indeed closed, has not yet been made public — except for this single line in Wikipedia’s list of Nuance acquisitions. Nuance has already responded to say it “won’t comment on rumors or speculation.” Nuance currently has a market cap of $7.2 billion and is traded on NASDAQ. Update: we have now heard back from a source very close to the deal. It officially closed yesterday (Wednesday). And now Nuance has also said that it will be announcing formally “in the coming weeks” but that it is not disclosing price. (In other words, I’m still trying to dig up the price.)
To date, VirtuOz has raised $20.4 million in venture funding, backed by French VC Galileo Partners as well as Mohr Davidow Ventures and Inventures Group — although as CEO and founder Alexandre Lebrun notes in his LinkedIn profile, he himself “bootstrapped the company in Paris [and] coded the initial product from scratch (based on an innovative, proprietary NLP approach and Machine Learning techniques)” before building out the development team. Today, VirtuOz counts PayPal, AT&T and Symantec among its list of top-shelf customers using its online virtual assistant services.
According to what we’ve seen, Nuance is making VirtuOz part of its Enterprise division, which focuses on customer self-service solutions that currently brings in revenues of $330 million annually from some 3,000 enterprise customers, covering some 12 billion customer interactions per year.
We understand that the full VirtuOz team led by Lebrun is making the transition, and that Nuance will keep all of VirtuOz’s online products intact and operational. (Nuance has a lot of experience integrating acquisitions: it’s made dozens over the years.)
Nuance also plans to integrate more of its own solutions with VirtuOz’s. Specifically, that is likely to include Nina, a virtual assistant solution from Nuance designed specifically for use in mobile apps, launched in August last year.
In addition to bringing some key customers to Nuance, VirtuOz will also bring is a way to extend the Nina experience to the web, and equally to give VirtuOz a route to developing more mobile services for its web clients. The addition will mean that Nuance can offer services across phone-based voice recognition, web, mobile, social and chat channels, covering speech recognition, text-to-speech, voice biometrics and natural language solutions.
The social aspect, indeed, is one to watch. It’s still early days for natural voice technology, but there are signs that we are going to see a lot more uses of this going forward. One of the more interesting is this tip from analyst Jeremiah Owyang that vendors are developing “proactive response” systems using technology from companies like VirtuOz to extend it “beyond chat agents, to deploy them in Facebook and Twitter streams to support brand interactions.”
VirtuOz is the leader in Digital Customer Relationships, enabling large and mid-market enterprises to use Intelligent Virtual Agents to provide world-class online marketing, sales, and support channels, ensuring a high quality user experience while improving operational performance. Recognized by the American Business Awards, Best in Biz 2011, Network Products Guide 2012 and Tech Awards Circle, the company’s award winning intelligent virtual agents offer companies a new channel for online self-service that delivers the best possible customer experience at...
Nuance Communications, Inc. provides speech, imaging and keypad solutions for businesses, organizations and consumers worldwide. The company’s solutions are used every day by people and businesses for tasks and services, such as requesting account information from a phone-based self-service solution, dictating records, searching the mobile Web by voice, entering a destination into a navigation system, or working with PDF documents. The company, through the acquisition of Philips Speech Recognition Systems GMBH (PSRS), provides speech recognition solutions for the European...