February 25, 2009 (FinancialWire) -- Nuance Communications, Inc. (NASDAQ: NUAN), which makes speech recognition software, said that it is extending an offer to purchase all of the outstanding common shares of Canada's Zi Corp. (NASDAQ: ZICA) (TSX: ZIC), for $0.40 per share in cash to 5: 00 p.m. Calgary time on March 10.

The company had originally offered 80 cents a share last August, but had cut the offer in half as the economy slid into deeper recession in the Fall. Zi's board has recommended that the company's shareholders reject the 40 cent offer as too low.

Nuance said that its offer represents a 25 percent premium over the closing price of Zi common shares on NASDAQ on August 13, the last trading day prior to the public disclosure of Nuance's initial proposal to Zi's board. The company said that the offer will be financed though Nuance's existing cash on hand.

As of 3 p.m. ET on February 24, around 1,943,602 common shares of Zi were validly tendered and not withdrawn pursuant to the tender offer.

Burlington, Massachusetts-based Nuance is a provider of speech and imaging solutions for businesses and consumers.

Calgary-based Zi is a provider of discovery and usability solutions for mobile search, input and advertising. Zi's products offers ways for mobile operators to showcase new services and content to their subscribers, while encouraging users increase their use their communication devices.

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