Nuance Communications said it will buy Ditech Networks for $22.5 million in a move to add voicemail to text and other voice technologies to its enterprise and mobile portfolios.
Specifically, Nuance will pay $1.45 a share in cash for Ditech, which closed at 81 cents on Monday. Shares of Ditech soared roughly 75 percent on the news.
Nuance said the plan is to take Ditech's Voice Quality Assurance (VQA) technology and PhoneTag voicemail-to-text services and add to its Dragon voice-to-text business and other products.
In short, Nuance paid an 81 percent premium for Ditech to rapidly add features to existing products.
Ditech's product line includes Ethernet, packet and broadband voice processors and software that converts messages to text.