Feeds

Scansoft and Nuance plan $221m merger

If you want to merge, say 'yes' after the tone

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

Speech recognition firms Scansoft and Nuance are to merge in a deal worth an estimated $221m. Scansoft will buy up all the outstanding Nuance common stock in a cash and shares deal.

Nuance shareholders will get 0.77 Scansoft shares and $2.20 in cash for each Nuance share they own. This will see Scansoft issue around 28 million common shares to complete the deal.

The new company will be known as Nuance (well, Scansoft doesn't exactly conjure up clear images of speech recognition now, does it?) but will be headed up by Scansoft's chairman and CEO Paul Ricci. Two of Nuance's board members, including Chuck Berger, president and CEO of Nuance, will join the ScanSoft board of directors. The deal is subject to regulatory approval and should close in September 2005.

The enlarged company will employ 300 speech scientists and engineers, and hold a combined portfolio of more than 250 speech-related patents. Scansoft says the combined revenue from both companies will exceed $315m, and that the merger will boost profits for 2006 as a whole.

The company will look to reduce expenses by between $20m and $25m per year through headcount reductions, consolidation of offices and de-duplication of operating expenses.

After the close of trading, Nuance's shares rose on the back of the news, jumping 55 per cent. Scansoft stock, meanwhile, took a 12 per cent slide dropping from $4.53 to $4.00, Reuters reports.

The press announcement is here. ®

Related stories

iVoice files patent on bouncing grannies
A cashpoint that gives you verbals
An MP3 player you can talk to...

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
Why has the web gone to hell? Market chaos and HUMAN NATURE
Tim Berners-Lee isn't happy, but we should be
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
'Stop dissing Google or quit': OK, I quit, says Code Club co-founder
And now a message from our sponsors: 'STFU or else'
Microsoft boots 1,500 dodgy apps from the Windows Store
DEVELOPERS! DEVELOPERS! DEVELOPERS! Naughty, misleading developers!
Linux turns 23 and Linus Torvalds celebrates as only he can
No, not with swearing, but by controlling the release cycle
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
This is how I set about making a fortune with my own startup
Would you leave your well-paid job to chase your dream?
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?