BURLINGTON, Mass. (AP) -- Nuance Communications is buying Ditech Networks in order to bolster its mobile and enterprise voice businesses.
Nuance's speech-recognition tools have helped power the iPhone's virtual assistant, Siri, and the Burlington, Mass., company's other technology enables different gadgets to respond to voice commands. Dietch makes voice-processing equipment for the telecommunications industry.
Nuance said it will pay $1.45 per Ditech share, which is a 79 percent premium to the company's Monday closing price of 81 cents. The companies put the value of the deal at approximately $22.5 million.
Shares of Ditech Networks Inc. shot up 62 cents, or 76.8 percent, to $1.43, while Nuance Communications Inc.'s stock slipped 17 cents to $25.33 in morning trading Tuesday.
Ditech, based in San Jose, Calif., currently has about 26.9 million outstanding shares, according to data provider FactSet.
Both companies' boards have approved the transaction, which is expected to close later this year. It still needs approval from Ditech shareholders.