Nuance spins off automotive division, now called Cerence

News General Global 2 OKT 2019
Nuance spins off automotive division, now called Cerence
Nuance Communications has spun-off its automotive division, now called Cerence. The two companies separated on 1 October, with Cerence shares set to start trading on 2 October on the Nasdaq Global Select Market. On its new website, Cerence says it will use AI, voice recognition, gaze and touch technologies, and augmented reality for its mobility technologies in the car. Nuance announced the spin-off late last year, and this summer named Sanjay Dhawan the new company’s future CEO.

In connection with the spin-off, Nuance said it has fully redeemed its USD 300 million worth of 6.0 percent senior notes due 1 October. And as a result of the transaction, the company said an adjustment will have to be made regarding the conversion rates of its 1.00 percent senior convertible debentures due 2035, 1.25 percent senior convertible notes due 2025, 1.50 percent senior convertible debentures due 2035, and 2.75 percent senior convertible debentures due 2031. The actual will be announced following the close of market on 15 October, the tenth regular trading day following the spin-off. 

Goldman Sachs and Evercore served as Nuance’s financial advisors while Paul, Weiss, Rifkind, Wharton & Garrison and Baker McKenzie served as legal advisors for Nuance.

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