Apple agreed to buy mobile-application developer Siri to gain access to a technology that lets users execute internet search from their handsets through voice commands.
The acquisition agreement has been signed but the deal has not closed yet, said Shawn Carolan, a managing director at Siri investor Menlo Ventures was quoted as saying.
Apple shares fell 44 cents to US$261.60 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have more than doubled in the past year.
Apple also announced the acquisition of Intrinsity, a designer of semiconductors. It declined to say how much it paid for the Austin, Texas-based Intrinsity, but media reports say Apple spent roughly US$120mn. Apple had bought mobile-ad network Quattro Wireless in January.
Siri makes a voice-recognition and search program it describes as a virtual personal assistant, and began offering it for the iPhone and iPod Touch this year. Siri lets users interact with their phone via voice or text, letting them ask for information about movies, restaurants, events and the weather.
Siri has raised about US$23.8mn in funding in the past two years. The San Jose, California-based company has about 25 employees.
San Jose, California-based Siri was founded in 2007. Its investors include Menlo Ventures, Morgenthaler Ventures, The Li Ka Shing Foundation, and SRI International.
Siri grew out of an artificial intelligence research project funded by a US$150mn investment from the US Defense Department's Defense Advanced Research Projects Agency (DARPA).