Nuance announced this morning that it has acquired Philips Speech Recognition Systems of Vienna, Austria, a European leader in healthcare in speech recognition, for $96.1 million in upfront and deferred cash.
“Nuance has been disciplined and focused in our pursuit of the healthcare opportunity in North America, a strategy that has paid dividends both in our rapid growth and the broad adoption of our solutions,” said Paul Ricci, chairman and CEO at Nuance. “PSRS provides a solid foundation of customers, partners and European language-solutions as we expand our business in Europe and enable broader geographical leverage for Nuance’s portfolio of healthcare products and services.”
HIStalk reader EMR Wannabe predicted the sale last week, saying, "Within the next ten days, Philips will announce divestiture of its SpeechMagic division. Conjecture is that SpeechMagic is getting resistance from large inpatient vendors because Philips competes in areas where GE, Siemens, and others make big money (radiology and PACS systems). SpeechMagic is about to take another run into the U.S. market, starting in 2009, but it does not fit into the Philips technology portfolio."