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Nuance Acquires Smartphone Virtual Keyboard Software Developer Swype for $100 Million

Swype, a software company that lets people type swiftly on touch screen smartphones, has been acquired by Nuance for $100 million.

Sources have told Uncrunched, a new blog founded by Michael Arrington, that Nuance, which makes voice recognition software, has acquired Swype.

Swype allows users to type on a virtual keyboard, found on most of the smartphones without lifting their fingers from the screen. Users simply trace the words on the keypad.

The software can be found on almost every Android based smartphone device. Swype also has made deals with smartphone makers to offer the software in their smartphones by default.

Interestingly, Nuance already has a predictive text writing software called T9, which directly competes with Swype. It is not clear how Nuance plans to use the technology or how it will affect the existing T9 software.

More importantly, Swype’s founder Cliff Kuschler helped create the T9 software when he was working at Tegic, which was later acquired by Nuance.

“I loved this application from the first time I saw it. Hopefully this acquisition will let the team continue to create even better technology to help us with those damned tiny keyboards,” Arrington wrote.