With touchscreens becoming ever more prevalent input experience is becoming more important. Swype offers an innovative alternative to the standard tap type keyboard, so it's no surprise to see the company being acquired.
Example of Swype keyboard
Nuance isn't a household name, but is behind some of the key input technologies for mobile devices. It's voice recognition technology is used in a variety of handsets, including the new Siri feature of the iPhone 4S.
Nuance also owns T9, the technology behind most 12 key predictive text input systems. Both T9 and Swype, which effectively compete with each other, share Cliff Kushler as a co-founder.
Swype recently raised $6 million in capital as part of C-series round (bringing total investment raised to around $16 million). Swype's investors include Samsung Ventures, Nokia Growth Partners, Benaroya Capital, DOCOMO Capital and Ignition Partners.