Spinvox, the troubled voice-to-text conversion company, has
been sold to a US rival for a knock down price.
Nuance Communications has cut a deal to buy the business for £64m
in cash and shares, a sum which falls far short of nearly £100m
in funding that Spinvox has raised over the past few years.
The company was launched by Christina Domecq and Daniel Doulton
in 2003. It grew rapidly and won awards for its technology.
However by 2007 Spinvox had made a loss of £47m and delayed
publishing its 2008 accounts.
Its credibility was dealt a body blow in July last year when the
BBC revealed that rather than using software to convert voice to
text, Spinvox was relying on human beings in telephone call
In September it emerged that one investor had written down the
value of its stake in Spinvox by 90%.
In an annual report to investors, Invesco valued its £759,000
investment in Spinvox at just £76,000, and also revealed that the
business was up for sale.