Philips Medical Systems' parent company Royal Philips Electronics of the Netherlands announced that it has signed an agreement to acquire a 60% stake in transcription services provider MedQuist for $1.2 billion. The agreement is subject to Philips' purchase of 60% of the fully diluted shares of MedQuist common stock, as well as to expiration of the Hart-Scott-Rodino waiting period and other customary conditions. Phillips says the purchase will allow it to offer cost-saving software and services to its customers, along with a full range of diagnostic imaging equipment.
MedQuist of Marlton, NJ, plans to actively incorporate Philips speech recognition technology. The two companies will also expand MedQuist's current range of outsourced transcription services to include in-house speech recognition software sales and Application Service Provider (ASP) distribution models. As part of the transaction, MedQuist and Philips have also entered into a license agreement for the joint development and implementation of speech recognition technology.
By AuntMinnie.com staff writersMay 23, 2000
Copyright © 2000 AuntMinnie.com
