Nuance Communications has signed an agreement to acquire eScription in a $400 million deal expected to close in fiscal third quarter 2008.
Burlington, Mass.-based Nuance, which provides speech and imaging technology, said the purchase will expand the companys electronic medical-transcription services to produce data-driven clinical documentation. Needham, Mass.-based eScription uses software to streamline the way medical reports are created.
Under terms of the agreement, Nuance will pay $363 millionincluding $340 million in cash and $23 million in common stockin addition to assuming vested employee options worth about $37 million. The acquisition is subject to closing conditions and regulatory approvals. In connection to the deal, private equity firm Warburg Pincus will buy 5.76 million shares of Nuance stock for $17.36 a share, an investment of $100 million.
Nuance said the acquisition will add between $13 million and $15 million in adjusted revenue to fiscal 2008, and between $56.5 million and $61.5 million in adjusted revenue to fiscal 2009. -- by Jean DerGurahian