Feeds

Scansoft and Nuance plan $221m merger

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

  • alert
  • submit to reddit

Top three mobile application threats

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...

Seven Steps to Software Security

More from The Register

next story
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Captain Kirk sets phaser to SLAUGHTER after trying new Facebook app
William Shatner less-than-impressed by Zuck's celebrity-only app
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
Apple: We'll unleash OS X Yosemite beta on the MASSES on 24 July
Starting today, regular fanbois will be guinea pigs, it tells Reg
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.