Nuance To Buy Transcend Services (Nasdaq: TRCR) For $300 Million; Trading + 39%

Austin, Tx 3/7/12 (StreetBeat) -- Nuance Communications (Nasdaq: NUAN) this morning announced a deal to buy Transcend Services (Nasdaq: TRCR), an Atlanta-based provider of medical transcription and speech editing services, for about $300 million net in cash.

Nuance said the deal will expands its customer base in the small- to medium-sized hospital market.

Terms of the deal call for Transcend holders to receive $29.50 a share in cash. The deal is
expected to close in the second half of Nuance’s September 2012 fiscal year.

Nuance said the deal will boost FY 2013 revenue by between $140 million and $150 million, while increasing non-GAAP profits by 8-9 cents a share.

In today’s trading:
Transcend is up $8.28, or 39.5%, to $29.25.
Nuance is up 63 cents, or 2.5%, to $26.13.

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