Nuance Communications, Inc. (NUAN) announced a definitive agreement to acquire Transcend Services, Inc. (TRCR), a provider of medical transcription and speech editing services, for approximately $300 million, in cash. Nuance has offered a cash tender of $29.50 per Transcend share, representing an approximately 30 percent premium over Transcend's 90-day volume weighted average share price.
Nuance expects the acquisition in fiscal 2013 to add between $140 million and $150 million in revenue; adjusted earnings between $0.08 and $0.09 per share; and, GAAP earnings between $0.02 and $0.03 per share.
The combination will help Nuance to accelerate access to and expand its customer base within the small- to mid-size hospital market, which comprises approximately 90 percent of hospitals in the U.S.
With Nuance's voice-enabled and Clinical Language Understanding technologies and deep electronic health record or EHR integration, combined with Transcend's high-quality transcription and editing services, hospitals can make clinical documentation and workflow more productive and cost efficient and extract greater value from clinical information.
The transaction has been unanimously approved by the board of directors of each company and is expected to close in the second half of Nuance's fiscal 2012.
by RTTNews Staff Writer
For comments and feedback: editorial@rttnews.com