Burlington-based Nuance Communications has made a cash tender offer to purchase outstanding shares of Zi Corporation, which develops and markets eZiText and eZiType for cellphone texting functions at cash consideration of 40 cents per share.

The offer, good until Dec. 31, represents a 38 percent premium over yesterday’s closing stock price.  The offer will be financed though Nuance's existing cash on hand.

This year in August, Zi rejected Nuance's earlier offer of 80 cents per share, or $40.4 million, as too low.

However, the offer is subject to the terms, conditions and other details set forth in the offering documents that Nuance has filed with the U.S. Securities and Exchange Commission (SEC) and applicable Canadian provincial securities commissions.

Nuance is a leading provider of speech and imaging solutions for businesses and consumers around the world.

In October, the company has acquired Philips Speech Recognition Systems (PSRS), a business unit of Royal Philips Electronics and leader in speech recognition solutions.

Shares of Nuance rose 27 cents, or 3.1 percent, to $9.05 in Nasdaq Stock Market trading. (AP)