Nuance Closes Acquisition of Dictaphone

BURLINGTON, Mass. - Nuance Communications, Inc. (Nasdaq: NUAN) closed its acquisition of Dictaphone Corporation.

The acquisition of Dictaphone expands Nuance's product portfolio, market reach and revenue streams within the health care vertical and brings together the companies' partnerships with electronic medical records (EMR) vendors, systems integrators and medical transcription service organizations (MTSOs).

Under the terms of the agreement, net consideration for the transaction was $359 million in cash, after accounting for all closing adjustments. Concurrent with the closing of the acquisition, Nuance also closed a senior secured debt facility from UBS Investment Bank, Credit Suisse, Citigroup and Bank of America. The facility comprises a $355 million term loan and a $75 million revolving credit facility.

Nuance also established the Dictaphone Healthcare Division. Rob Schwager, former CEO of Dictaphone, will assume the role of division president reporting to Paul Ricci and based in Burlington, Mass. Schwager will be joined by several members of the Dictaphone management team to comprise the leadership for this division.