Nuance to spin off its automotive segment

Nuance to spin off its automotive segment

Business news |
By Rich Pell

The standalone entity, says the company, will be a pure-play, next-generation automotive software company. The company says it sees the move as an important step in its automotive unit’s growth and the continued development of its conversational AI platform.

“We are incredibly proud of the auto business we’ve built, and at the same time we recognize the growing excitement around automotive technology,” says Mark Benjamin, CEO of Nuance. “We are excited to launch this business for long-term success by separating it into an independent, focused company. At the same time, the separation will help us become more focused on our core growth opportunities in healthcare and enterprise.”

In the automotive space, the company’s conversational AI technologies help automotive manufacturers deliver connected and personalized experiences for drivers and passengers. Nuance Auto’s deeply integrated, customizable solutions power smart automotive assistants that are seamlessly integrated into the in-vehicle connected ecosystem.

Nuance Auto products ship in more than 50 million new cars each year and can be found today in more than 200 million cars, with voice commands recognized in more than 40 languages. The business, says the company, creates conversational experiences for virtually every automotive manufacturer, including Audi, BMW, Daimler, Fiat, Ford, GM, Hyundai, SAIC, and Toyota, as well as virtually every major tier-one automotive supplier.

Nuance says that it intends to appoint an independent management team and nominate members to a separate board of directors for Nuance Auto before the transaction is completed. The business is expected to be headquartered in Boston and will maintain a significant presence in Montreal and Aachen, Germany, among other global locations.

The transaction is expected to be completed before the end of the company’s fiscal 2019, at which point Nuance shareholders will own shares of both companies.

Nuance Communications

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