Nuance acquires voice-to-text rival Vlingo

Speech recognition technology provider Nuance Communications has agreed to acquire rival Vlingo. Financial terms of the agreement were not disclosed.

Vlingo combines voice-to-text technology, natural language processing and the firm's own Intent Engine to better understand user demands and requests and deliver the most appropriate response. Nuance's rival Dragon speech recognition software powers search and dictation services spanning Google's (NASDAQ:GOOG) Android, Apple's (NASDAQ:AAPL) iOS and Research In Motion's (NASDAQ:RIMM) BlackBerry. In addition, its software is reportedly included in Siri, the new voice-activated control technology integrated into Apple's iPhone 4S. Nuance and Vlingo previously tangled in court over patent claims.

Nuance credited the Vlingo deal to surging consumer interest in voice-enabled consumer experiences across smartphones, tablets, automobiles, navigation devices and televisions. Nuance adds the two firms will combine their respective technologies and R&D experience to build next-generation natural languages interfaces targeting multiple markets and industries.

The Vlingo deal represents the second major Nuance acquisition during the current quarter. In October, the company scooped up mobile text input solutions firm Swype for $102.5 million. A Securities and Exchange Commission filing states Nuance paid $77.5 million at closing and will fork over the remaining $25 million in 18 months.

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