Nuance Buys AOL Mobile Unit Tegic

Nuance Communications has agreed to purchase Tegic Communications from AOL for $265 million, the companies reported Friday. Tegic, a little-known subsidiary of AOL, makes the T9 text input software common on mobile phones, as well as a touch input solution.

With the acquisition, Nuance will expand its portfolio of mobile offerings, which currently includes voice-enabled applications for mobile search, e-mail and text messaging. Tegic will also help Nuance improve its reach, as the company has struggled to gain traction in the marketplace. AOL acquired Tegic in 1999 as part of its "AOL Anywhere" strategy.