Nuance to buy DictaphoneNuance Communications on Wednesday said it agreed to buy Dictaphone, a privately held dictation and speech recognition company, to boost Nuance's presence in health-care transcription services. Nuance said it expects the purchase, which will cost $357 million in cash, will add between $80 million and $85 million in revenue during fiscal 2006, and $180 million to $185 million in fiscal 2007.
The acquisition is expected to reduce net income by 11 cents to 12 cents per share in 2006, and by 2 cents to 5 cents in 2007, the company said. It has been approved by the boards of both companies and is expected to close by March 31. Nuance and Dictaphone were represented by Evercore Partners and UBS Investment Bank, respectively.