© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - Nuance to Acquire TouchCommerce, Accelerate Growth of Enterprise Business
Posted 21st July 2016

Nuance to Acquire TouchCommerce, Accelerate Growth of Enterprise Business

Nuance Communications, Inc. today announced that it has signed a definitive agreement to acquire TouchCommerce, a technology partner and leader in digital customer service and engagement solutions.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Nuance to Acquire TouchCommerce, Accelerate Growth of Enterprise Business
Image

Nuance Communications, Inc. today announced that it has signed a definitive agreement to acquire TouchCommerce, a technology partner and leader in digital customer service and engagement solutions.

Used by leading enterprises, TouchCommerce’s customer engagement cloud platform increases eCommerce sales and improves the customer service experience. The addition of TouchCommerce will help accelerate Nuance’s Enterprise business and expand its customer care solutions with a range of new digital engagement offerings, including live chat, customer analytics and personalization solutions.

For large enterprises around the world, customer service interactions are accelerating toward more pervasive digital engagement across web, mobile and social platforms. Consumers today want to choose how they interact or transact, and to move effortlessly between the efficiency of web chat, the connectivity of social media, the independence of self-service, and the convenience of human interaction. In order to acquire and retain customers, enterprises need to be able to provide a customer service experience when and how the customer desires. This is creating a growing market opportunity for Nuance’s Enterprise business, and a combination with TouchCommerce will provide an end-to-end engagement platform that merges intelligent self-service with assisted service to increase customer satisfaction, strengthen customer loyalty and improve business results.

With TouchCommerce, the Nuance Enterprise business gains:

The Best of Self-Service and Best of Assisted-Service Solutions

The powerful merging of live chat, self-service guides and data-driven personalization has established TouchCommerce as a leader in digital customer engagement across mobile, web and messaging channels. The TouchCommerce assisted-service platform is the perfect addition to Nuance’s AI-powered customer self-service solutions, providing enterprises with the ability to efficiently and effectively engage with customers across all channels – phone, web, mobile, social, and more.

Strong Customer Relationships and Synergies

The acquisition of TouchCommerce is a natural extension of Nuance’s Enterprise business and is expected to add attractive revenue streams and incremental organic growth. TouchCommerce has built and maintained strong customer relationships with premier businesses that include AT&T, Citizens Bank, DirectTV, Dixons, eHarmony, Panasonic, Telefonica and T-Mobile. While a majority of TouchCommerce customers already use Nuance solutions, less than 10% of Nuance enterprise customers currently use TouchCommerce, which is expected to create a significant growth opportunity for Nuance. In addition, the company expects to accelerate global reach for TouchCommerce through Nuance’s extensive distribution capabilities in EMEA and Asia Pacific regions.

Expanded Addressable Market Opportunity

The combination of TouchCommerce digital assisted service and Nuance AI-powered solutions comes at a time when consumer preferences for customer service engagements are accelerating toward digital web and mobile services. A recent Forrester study (“Brief: Don’t Make Your Customers Call You For Service,” Forrester Research, Inc., May 16, 2016) found that consumers are increasingly using self-service channels for customer service, with 66% engaging in digital self-service. The acceleration of digital customer service solutions is expected to expand Nuance’s opportunities in the Customer Engagement market, a $3.7 billion market that is growing at 17% (RnR Market Research, December 2015).

Enhanced Nuance Analytics and AI Differentiation

Nuance and TouchCommerce collectively enable billions of customer interactions each year, generating powerful data assets that, when combined with Nuance’s artificial intelligence technologies, will increase the automation and accuracy levels for a wide range of customer service applications. Nuance will also leverage TouchCommerce’s agent desktop to enable seamless escalation from virtual assistant to human-assisted service, with the system learning through every customer engagement. Finally, TouchCommerce’s real-time data and targeting technologies will be leveraged to deliver higher levels of personalization and proactive service across the platform.

“The combination of Nuance and TouchCommerce promises to disrupt the customer service industry by bringing together the best of self-service and the best of assisted-service solutions, each magnified by the power of artificial intelligence,” said Robert Weideman, executive vice president and general manager for Nuance Enterprise Division. “The result provides enterprises with a customer engagement solution that connects with consumers anytime and anywhere, across voice, digital and mobile devices – delivering superior customer experiences and business results.”

“We are thrilled to join forces with our technology partner Nuance and to integrate our respective capabilities to deliver to our enterprise customers the best omni-channel customer engagement technology and solutions in the industry,” said Bernard Louvat, president and chief executive officer of TouchCommerce. “Our respective capabilities are so complementary and our strategies so similar that it became obvious to both parties that joining forces was the logical next step beyond our existing technology partnership.”

The transaction has been approved by both companies’ Boards of Directors and is expected to close by the end of Nuance’s fiscal year 2016. Total consideration is $215 million. At closing, Nuance will pay $110 million in cash and $85 million in a combination of cash and Nuance common stock determined by Nuance, and the remaining $20 million will be paid at the conclusion of an indemnity period.

The transaction is not expected to have a material impact on Nuance’s fiscal 2016 revenues. In fiscal 2017, TouchCommerce is expected to add at least $60 million in GAAP revenue and at least $70 million in non-GAAP revenue, and add at least a percentage point to overall corporate organic growth. In fiscal 2016, Nuance expects the transaction to be accretive to GAAP EPS by $0.07 and neutral to non-GAAP EPS. In fiscal 2017, Nuance expects the transaction to be dilutive to GAAP EPS by $(0.07) and neutral to non-GAAP EPS.(see GAAP to non-GAAP reconciliation table)

Categories: Strategy


You Might Also Like
Read Full PostRead - Eye Icon
8 Critical Components of a Good Human Resources Strategy
News
16/02/20238 Critical Components of a Good Human Resources Strategy

Businesses often invest a lot of time and resources into the sales and marketing teams, while ignoring the value of the human resources department. Without them, the rest of the company would be ineffective in their roles. Human resources teams are more import

Read Full PostRead - Eye Icon
Alamos Gold, AuRico Gold merging in $1.5 billion deal
Finance
15/04/2015Alamos Gold, AuRico Gold merging in $1.5 billion deal

Canadian gold mining companies Alamos Gold and AuRico Gold Inc. are merging in a deal valued at approximately $1.5 billion.

Read Full PostRead - Eye Icon
AI and Humans, the Superheroes of Today
Innovation
02/01/2024AI and Humans, the Superheroes of Today

Businesses need to change the perception of AI from being the ‘villain’ to the invisible superhero that will augment employees’ roles and create more jobs. McKinsey Global Institute estimates that as early as 2030 AI could contribute to the creation of 2

Read Full PostRead - Eye Icon
The Secret to Success? Find a Trusted Business Advisor
News
08/09/2023The Secret to Success? Find a Trusted Business Advisor

Starting a business is a bit like hiking up a mountain blindfolded – it’s difficult, disorienting, and you never know what unexpected cliffs or pitfalls await around the next bend. The stakes feel high, and one wrong step can send you tumbling. But

Read Full PostRead - Eye Icon
Initiative & Finance Acquisition of Minority Stake in FAK
Finance
23/07/2015Initiative & Finance Acquisition of Minority Stake in FAK

Initiative & Finance Acquisition of Minority Stake in FAK

Read Full PostRead - Eye Icon
The Power of Partnership 
Leadership
16/01/2023The Power of Partnership 

A shared services organisation, U.S. Oral Surgery Management (USOSM) collaborates with premier oral and maxillofacial surgeons to offer a partnership solution for continued and accelerated practice success.

Read Full PostRead - Eye Icon
Blackstone Acquire Office Building in London for $400m
Finance
01/04/2015Blackstone Acquire Office Building in London for $400m

Blackstone Group LP, the world’s largest private-equity investor in real estate, agreed to buy an office building in the City of London financial district for $400 million from Land Securities Group Plc.

Read Full PostRead - Eye Icon
Consolidations Taking Place in the International Money Transfer Space
Finance
05/10/2021Consolidations Taking Place in the International Money Transfer Space

And as we move into Q4 2021, more firms in the international money transfer industry are set to add to the fireworks. Overall, though, the industry is about to get less crowded.

Read Full PostRead - Eye Icon
Forget GameStop, gamification is the real investing revolution
Strategy
05/03/2021Forget GameStop, gamification is the real investing revolution

The impact on the financial world was sensationally underlined in the US, when a swathe of retail investors sought to bring down eminent hedge funds by bidding up the beleaguered GameStop stock. Behind the David and Goliath headlines, are some trends that the



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow