DALLAS-Voice Control Systems Inc. announced it will merge with Voice Processing Corp. in a pooling of interests transaction valued at more than $40 million.
VCSI said it is the world’s largest supplier of speech recognition in telecommunications and invented many of the current applications of the technology including wireless switch-based voice dialing, while VPC developed the first continuous speech recognition product for commercial use in telecommunications.
“The merger will take the world’s two most experienced speech recognition teams and allow them to focus their efforts not only on current competitive products, but on the future of speech recognition. Between us we have the bulk of the world’s experience making speech recognition work in the field,” said Peter Foster, VCSI’s president and chief executive officer.
The company said it will issue up to four million shares and share equivalents to security holders of VPC. On a fully diluted basis, VCSI shareholders will own about 70 percent of the company and VPC shareholders will hold the remaining 30 percent.
The transaction is subject to completion of definitive agreements and stockholders of both companies approving the deal.
Upon completion of the merger, the combined company will have approximately 13.7 million shares outstanding on a fully diluted basis.
