It's official. Nuance Communications Inc. has finished its purchase of former competitor Dictaphone Corp. The transaction totaled $359 million in cash. Nuance said it pursued the acquisition to accelerate its strategy to automate manual transcription in healthcare, where an estimated $15 billion is spent worldwide each year.
The move follows Nuances’ shift over the last two years to build its investment within healthcare, putting resources towards product development, sales, business development and marketing. Nuance expects the acquisition to add between $80 million and $85 million in revenue in fiscal year 2006 and between $180 million and $200 million in fiscal year 2007.
Nuance also announced that it has established the Dictaphone Healthcare Division. Rob Schwager, former CEO of Dictaphone, assumes the role of division president which is based in Burlington, Mass. Schwager is joined by several members of the Dictaphone management team to comprise the leadership for this division.