While speech technology has been furthering communications and technology interfaces throughout many – if not most – industries, there are few places where the adoption has been more rapid, and the benefits more widely felt, than in the healthcare industry, where transcription of medical records is a pressing requirement.
Speech technology company Nuance (News - Alert) is pushing further into the healthcare industry with the acquisition of Transcend Services, Inc., a provider of transcription and clinical documentation services to the healthcare industry. Transcend will join Nuance Healthcare, a division of Nuance Communications (News - Alert) that provides solutions that capture and transform patient medical data into meaningful, actionable information.
As of today, thousands of hospitals, providers and payers use Nuance voice-enabled clinical documentation and analytics solutions to facilitate smarter, more efficient decisions across the healthcare enterprise.
With Transcend, Nuance is expected to accelerate access to and expand its customer base within the small- to mid-size hospital market, which comprises approximately 90 percent of hospitals in the U.S. and increasingly demands cost effective, voice-enabled, clinical documentation solutions.
Nuance’s voice-enabled and clinical language understanding technologies and deep electronic health record (EHR) integration, combined with Transcend’s transcription and editing services, will help enable hospitals to make clinical documentation and workflow more productive and cost efficient, extracting greater value from clinical information, said Nuance in a press release.
“The acquisition of Transcend will expand the delivery of our innovative voice and Clinical Language Understanding solutions especially to small- and mid-size hospitals,” said Janet Dillione, executive vice president and general manager of Nuance’s Healthcare business. “With Transcend, we will drive change and improvement to the way these hospitals capture and leverage clinical information. The acquisition is a natural extension of Nuance’s existing healthcare business, and will strengthen our solution and services portfolio, as well as enhance our profitability.”
Nuance has agreed to acquire Transcend through a cash tender offer of $29.50 per Transcend share, representing an approximately 30 percent premium over Transcend’s 90-day volume weighted average share price. The transaction has been unanimously approved by the board of directors of each company.
Based on Transcend’s 11.1 million diluted weighted average shares outstanding as of December 31, 2011, the acquisition is valued at approximately $300 million, net of Transcend’s estimated cash at closing. The transaction is expected to close in the second half of Nuance’s fiscal 2012, subject to regulatory approval and other conditions.
Edited by Jennifer Russell