Speech recognition and document management firm Nuance Communications has acquired New York City-based Commissure, an imaging software company that provides speech-enabled radiology workflow optimization and data analysis technology.
With the purchase, Burlington, MA-based Nuance plans to broaden the capabilities of its Dictaphone products for the imaging market, extend its presence in radiology market, and increase revenue growth through software service offerings.
"We have a lot of customers on the PowerScribe side asking us to help them optimize their overall radiology business, both on the workflow side and on the business side," said Peter Durlach, senior vice president of healthcare marketing and strategy for Dictaphone. "We will continue to support and develop both the Commissure products and PowerScribe products."
Among the products coming to Nuance is Commissure's RadPort order entry decision support and RadCube data mining technologies. For the past three years, Commissure has had a license agreement to use Dictaphone's speech recognition technology.
Nuance also acquires Commissure's exclusive technology license agreement with Massachusetts General Hospital (MGH) of Boston. MGH developed a natural language technology called LEXIMER (Lexicon Mediated Entropy Reduction) in conjunction with Commissure. The computer algorithm conducts independent analysis and classification of unstructured radiology reports based on the presence of clinical findings.
A radiologist can document what was ordered and why, what the study discovered, whether there were positive or negative findings, and whether a follow-up was necessary. "You can track the life of an order," Durlach said.
Financial terms of the transaction have not yet been disclosed.
Nuance will grant 218,000 shares of its common stock to 21 individuals entering into employment arrangements with Nuance. The stock will be granted upon the approval of Nuance's board of directors. Approximately 50,000 stock units will be vest over a four-year period and another 168,000 units vested over a three-year period.
Durlach said Nuance often offers grant stock options and restricted stock to employees of the companies Nuance acquires. He added that the 21 people who have been offered stock are not necessarily Commissure shareholders.
He added that all of Commissure's employees will become part of Nuance, and stock grants have been "to a number of them."
By Wayne Forrest
AuntMinnie.com staff writer
October 2, 2007
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