Speech recognition and software developer Nuance Communications has signed a definitive agreement to acquire medical transcription and speech editing services provider Transcend for approximately $300 million in cash.
Nuance has offered $29.50 per Transcend share, which is approximately 30% greater than Transcend's 90-day average share price. Both companies' boards of directors have unanimously approved the transaction.
With Transcend, Nuance expects to bolster its customer base in the small- to midsize hospital market, which comprises approximately 90% of hospitals in the U.S.
Nuance estimated that the acquisition will add between $140 million and $150 million to company revenue in fiscal 2013. The transaction is expected to close in the second half of Nuance's fiscal 2012, subject to regulatory approval and other conditions.
Transcend's management will stay in place at Nuance, including Transcend President and CEO Susan McGrogan and Chief Financial Officer Lance Cornell.
