As part of its efforts to target the medical transcription industry, speech and imaging software maker Nuance Communications has agreed to pay $357m to acquire Dictaphone Corporation.
The acquisition of Dictaphone, a provider of dictation and speech recognition solutions for the healthcare industry is expected to expand Nuance’s product portfolio, market reach and revenue streams within the large and rapidly growing healthcare vertical.
Nuance says that Dictaphone adds significant and stable recurring revenue streams from many of its products and services, including ichart web-based speech recognition editing outsourcing service, PowerScribe speech recognition system for radiology and pathology, EXSpeech enterprise-level speech recognition platform, and Enterprise Express voice/text workflow management solution.
Rob Schwager, chairman and CEO of Dictaphone, said, We share with Nuance the strong belief that speech recognition is not only at an inflection point in healthcare, it is also becoming an essential component of the industry’s drive toward cost reduction and clinical automation. By combining Dictaphone’s software application skills, understanding of physician documentation needs and workflows, and substantial market presence with Nuance’s deep expertise and innovation in speech recognition technologies, the combined company is extremely well-positioned to lead the market.
According to the Nuance, the healthcare industry is under increasing pressure to streamline operations and reduce costs whilst also improving patient care. The company says it has given due notice to analyst predictions that clinical automation will become an essential component of healthcare delivery to address these mounting pressures.