Feeds

Scansoft and Nuance plan $221m merger

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

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

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...

Protecting users from Firesheep and other Sidejacking attacks with SSL

More from The Register

next story
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
'Windows 9' LEAK: Microsoft's playing catchup with Linux
Multiple desktops and live tiles in restored Start button star in new vids
iOS 8 release: WebGL now runs everywhere. Hurrah for 3D graphics!
HTML 5's pretty neat ... when your browser supports it
Mathematica hits the Web
Wolfram embraces the cloud, promies private cloud cut of its number-cruncher
Mozilla shutters Labs, tells nobody it's been dead for five months
Staffer's blog reveals all as projects languish on GitHub
'People have forgotten just how late the first iPhone arrived ...'
Plus: 'Google's IDEALISM is an injudicious justification for inappropriate biz practices'
SUSE Linux owner Attachmate gobbled by Micro Focus for $2.3bn
Merger will lead to mainframe and COBOL powerhouse
iOS 8 Healthkit gets a bug SO Apple KILLS it. That's real healthcare!
Not fit for purpose on day of launch, says Cupertino
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.