Nuance Communications has established a definitive agreement to sell off its India SRS division.
It’s part of a larger effort on Nuance’s part to divest itself of its Subscription Revenue Services business, which is focused on mobile services in emerging markets, with the company also having recently completed the sale of its Brazil SRS division. Nuance said in a statement that the sales will enable the company to focus more on “higher-growth opportunities in cloud and conversational AI”.
“These transactions are a great outcome for everyone as they enable us to exit this non-core business faster than a wind-down, while ensuring continuous support and services for our customers,” explained Nuance CEO Mark Benjamin. “We remain sharply focused on cloud-based, intelligence-driven solutions, capable of sustainable long-term revenue and earnings growth.”
Nuance has not disclosed the terms of either its Brazil SRS sale or the agreement pertaining to India SRS, but the voice biometrics and speech recognition specialist did indicate that the latter deal is expected to close in July of this year. Nuance also revised its Q3 and 2019 revenue guidances, bringing the former from a projected GAAP revenue of $451-465 million to $447-461 million, and the latter from a GAAP revenue of $1.845-1.877 billion to an anticipated $1.837-1.869 billion.
The news comes soon after Nuance’s announcement that it had hired a new head for its planned Nuance Automotive division, another strategic business maneuver aimed at long-term success.
June 25, 2019 – by Alex Perala