Dictation software company Nuance Healthcare said Wednesday it's buying medical transcription service firm Transcend Services for $300 million cash in an effort to move deeper in the U.S. small and mid-sized hospital market.
Nuance says it's offering $29.50 per share, a premium of 30 percent on Transcend's 90-day weighted average. The offer takes effect by March 20, and is conditional on getting the majority of outstanding shares and other closing conditions.
Nuance says the deal, expected to wrap up in the second quarter of its fiscal 2012, should add $140 million to $150 million in revenues in fiscal 2013 and earnings of about eight to nine cents per share (non-GAAP figures).
Atlanta-based Trascend offers the Encore speech recognition platform and employs 2,000 medical transcriptionists to help convert dictation into documents. It has more than 325 customers, according to a brochure on its website.