Nuance to acquire medical transcription firm Transcend

Transcend will provide to Nunace a foothold in the small and mid-size hospital market

Expanding its software-aided medical transcription services, Nuance Communications will purchase medical transcription service provider Transcend Services for US$300 million, the two companies announced Wednesday.

Nuance will fold Transcend's service into its own significant medical transcription and health care natural language processing (NLP) services. In particular, Nuance is interested in Transcend's strong presence in the small- to mid-size hospital market, which accounts for about 90 percent of all hospitals in the U.S.

Medical transcription already accounts for approximately 30 percent of Nuance's annual revenue, said Carina Edwards, Nuance vice president of healthcare solutions marketing. The purchase of the Atlanta-based Transcend will boost Nuance annual revenue by about $140 million to $150 million per year, the company estimates. The company's health care practice accounted for $527 million in revenue for its fiscal 2011.

Today a big portion of medical transcription is done through speech recognition software augmented to understand clinical vocabulary. A doctor or medical professional will record his or her notes, which the software will then transcribe into text. Medical transcribers then review and edit the resulting copy for accuracy, Edwards said. The medical NLP capabilities can also be used for computer aided phone support systems.

Nuance will fold Transcend's transcribers into Nuance's own workforce, and they will be able use Nuance's software for increased productivity. Additionally, key members of Transcend's management team will continue to work at Nuance, including President and Chief Operating Officer Susan McGrogan and Chief Financial Officer Lance Cornell.

Although best known for its general use speech recognition software, Nuance also supplies its software for third party applications and services, such as for automobiles, handheld devices and call routing systems.

For the acquisition, Nuance will purchase 11.1 million shares of Transcend stock, at $29.50 per share. Each company's board of directors has approved the deal, though it still requires regulatory approval. The acquisition is expected to close in about three to six months.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?