Speech recognition provider Nuance Communications has signed a definitive agreement to acquire digital dictation and speech recognition firm Dictaphone for $357 million in cash.
Burlington, MA-based Nuance said the acquisition accelerates its strategy to automate manual transcription in healthcare. Dictaphone of Stratford, CT, will continue as a wholly owned subsidiary of Nuance.
Nuance said it expects the acquisition will add between $80 million and $85 million in revenue in fiscal 2006 and between $180 million and $200 million in fiscal 2007. On a GAAP (generally accepted accounting principles) basis, the acquisition is expected to be dilutive to fiscal 2006 earnings by approximately 11¢ to 12¢ per share and 2¢ to 5¢ per share in fiscal 2007.
The deal, subject to regulatory approvals and customary conditions, has been approved by both companies' boards of directors, and is expected to close by March 31.
By AuntMinnie.com staff writers
February 8, 2006
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