After its success in touchscreen devices, Swype is going to be acquired by Nuance for $100+ million.
Since its launch in 2008, Swype has been one of the best apps for users of touchscreen devices and mobile phones. It’s an app which allows its users to type messages with one swipe of finger or stylus motion on the keyboard screen. The innovative input method is speedy as it’s allows users to write 40 words per minute. The patented input has been a success in Android based devices.
Today, according to a report by Michael Arrington, Swype has been acquired by Nuance for over $100 million. But according to SEC filling, the deal worth’s $102.5 million. Wall Street Journal has confirmed the deal; previously it had pegged the deal between $100 to $150 million. Both companies are expected to announce the deal soon.
Nuance, the makers of voice control technology, has currently a market capital of $6.7 billion. Since the start of this year, the company has been trying to acquire a number of companies like SVOX and Equitrac. Some reports have suggested that Nuance is also in negotiations with Apple as it was trying to get licensing for Lion OSX. Though, Apple did not confirm the reports, Nuance has an important role in the development of the Siri technology which is a premier part of Apple’s new iPhone 4S. According to MG, “even if Apple wanted and tried to come up with their own voice technology backend for Siri, they would have a hard time doing so without infringing on some of Nuance’s patents. Patents which Nuance CEO Paul Ricci is very well known to enforce to their maximum extent”.
It is interesting that Nuance also owns another predictive text app called T9. It is the only competitor of Swype but interestingly it was founded by Cliff Kushler who is also the co-founder of Swype. With both products in its name, we might see a merger of both but Nuance may also send T9 to trash bin for being obsolete.
Since 2008, Swype has been able to raise $14 million outside investment. Swype was mainly supported by investors like Samsung Ventures, Nokia Growth Partners, Benaroya Capital, DoCoMo Capital, Ignition Partners, and many more. Such deal is definitely going to benefit the investors. But with new partners coming, Swype will soon be coming on more than 100 million cellphones, touchscreen devices, smartphones etc.