Nuance Communications Inc. (Nasdaq: NUAN) has agreed to buy SNAPin Software Inc., a Bellevue, Wash.-based provider of mobile device and server self-service technology. The deal is valued at approximately $180 million worth of Nuance common stock, and is expected to close in October.
SNAPin has raised around $30 million in VC funding since 2004, from firms like Frazier Technology Ventures, Oak Investment Partners, Hunt Ventures, Seapoint Ventures and Trilogy Equity Partners.
Nuance Communications, Inc. (NUAN) today announced a definitive agreement to acquire privately-held SNAPin, a provider of mobile device and server self-service technology. With the strengths and resources of Nuance and SNAPin, the combined organization can deliver innovative, highly scalable mobile customer care solutions that transform the way mobile operators and enterprises interact with consumers in real-time on mobile devices.
With this acquisition Nuance is uniquely positioned to address the significant global opportunity in customer care as it converges around the mobile phone as the primary consumer access point. Companies worldwide will employ more than six million agents and spend more than $100 billion in customer care in 2008. In addition, estimates suggest that more than 200 billion calls are placed into customer service numbers around the world every year. An estimated one-third of those calls are placed from mobile phones and the number is expected to grow to two-thirds before the end of the decade. A Nuance and SnapIN combination can deliver effective care for cents-per-call compared to agent-assisted calls that approximate $4.50 per call on average.
“The integration of Nuance's mobile solutions and enterprise speech solutions allows Nuance to sharply reduce the costs of customer care and improve the quality of customer experience for mobile operators and large enterprises,” said Steve Chambers, president of the Mobile and Consumer Services Division at Nuance. “Leveraging the proliferation of mobile devices worldwide, Nuance's solutions, combined with powerful technology from SNAPin, enable Nuance to deliver the economies of Web-based self-service to the growing expanse of mobile consumers.”
By combining SNAPin's key intellectual property, mobile expertise and established device and operator relationships with Nuance's robust capabilities in customer care and handset solutions and longstanding mobile and enterprise relationships, the Company is positioned to deliver superior mobile care solutions and fulfill a significant global opportunity that has captured the interest of the world's largest mobile operators.
As an example, Vodafone is using SNAPin's software to provide its customers with the ability to automatically resolve common requests