Nuance Communications is rumoured to be a buyout target for California-based Apple. Apple co-founder Steve Wozniak on a video interview with TvDeck, he appeared to be referring to a potential deal related to voice recognition search technology, which Nuance said Tuesday that it is powering for Ask.com’s I-Phone application.
Knowing all the top executives at Nuance and their robust track record and well-respected reputation in the market, the rumors are likely not true but a combination of Apple hardware with Nuance software assets would make a highly competitive next-generation I-Phone/I-Pad platform
Nuance reported its fiscal 2010 results on Monday without a hint to stockholders of any impending deal to sell itself to Apple.
“In the fourth quarter, Nuance delivered 18% revenue growth and record operating cash flow, driven by strong performance in our healthcare and mobile and consumer business lines,” said Paul Ricci, chairman and CEO of Nuance. “Strong fourth quarter bookings for our healthcare and mobile solutions position Nuance for sustained growth in fiscal 2011.”
Nuance has a market cap of $ 5.29B. Apple has ample cash to buy Nuance but in my opinion the company has the potential for a higher multiple deal in few more years.