Zi Corporation (ZICA) in Discussions with Strategic Partner; Sees Deal at Premium to Nuance (NUAN) Offer
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Zi Corporation (Nasdaq: ZICA) announced that it is party to a non-binding letter of intent with a leading global consumer electronics corporation (the "Strategic Partner"). Zi and the Strategic Partner are in advanced stages of negotiations on the terms of a strategic transaction. If consummated, this transaction would result in an equity investment by the Strategic Partner in Zi at a share price that would be at a premium to the proposal by Nuance Communications, Inc. (Nasdaq: NUAN) dated August 14, 2008 and, in addition, would result in contracts that would generate significant multi-million dollar annual revenues for Zi.
Although there can be no assurance that the transaction will successfully close, Zi has issued this announcement, with the consent of the Strategic Partner, in order to ensure that Zi's shareholders are aware of the alternative opportunities available to Zi in the face of the recent Nuance Proposal. The Board of Directors of Zi had previously announced that it declined to enter into negotiations with Nuance in respect of its proposal, citing that the Nuance Proposal did not give full value to Zi and its shareholders.
Milos Djokovic, President and CEO, says, "Due to certain confidentiality and exclusivity terms agreed to with the Strategic Partner, which terms predate the Nuance Proposal, we have been, and remain limited in our capacity to provide further disclosure on this proposed transaction. Zi's board of directors and management remain committed to maximizing shareholder value."
(NOTE - On Aug, 14, 2008, Nuance submitted a proposal to acquire Zi Corporation for U.S. $0.80 per share in cash)
Zi Corporation (Zi) develops software designed to enhance the usability of mobile and consumer electronic devices. [SM]
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