Nuance Communications, Inc., a multinational computer software technology firm, headquartered in Massachusetts, has reportedly announced the spinoff of its automotive business segment into a new, publicly traded, independent firm – Nuance Auto.
Sources claim that the company would be a next generation automotive software company. Post the transaction, which is expected to be completed before 2019, Nuance’s shareholders would own shares of both the companies. Incidentally, for shareholders of Nuance, the transaction would be tax-free.
Mark Benjamin, CEO, Nuance Communications, was reportedly quoted stating that they are extremely proud of building their auto business and they recognize the growing thrill around automotive technology. The company is thrilled to launch their business for long-term success by making it a focused, independent company, Benjamin says, and the spinoff will enable them to become more focused on their core growth opportunities in Healthcare and Enterprise.
Experts affirm that of late, new technologies are transforming the experience of passengers through connectivity, shared mobility, and enhanced driver assistance. Apparently, Nuance is the market leader in cognitive assistants and voice recognition for car communication system and infotainment and delivers technology to help understand the future of mobility. Becoming a publicly traded, independent firm represents a vital step in Nuance Auto’s growth and continued development of its conversational AI platform, say sources.
Nuance Communications specializes in Conversational AI technology that assists automotive manufacturers deliver personalized and connected experiences for drivers and passengers. Seemingly, Nuance Auto provides customizable, deeply integrated solutions that power smart automotive assistants that are flawlessly integrated into the in-vehicle connected ecosystem.
The business would create conversational experiences for automotive manufacturers, including BMW, Audi, Fiat, Daimler, GM, Ford, SAIC, Toyota, and Hyundai, as well as for the major tier-one automotive suppliers. Nuance Auto ship over 50 million new cars per year, and there are over 200 million cars that have voice commands recognized in more than 40 languages. In 2018, the business generated a revenue of $279 million, with an organic growth of 7 percent and 39 percent segment margin.