This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Nuance Buys New York Software Firm

SAN FRANCISCO -- Continuing to consolidate the software market for speech recognition, Nuance (NUAN) said Tuesday it acquired Commissure, a New York-based developer.

Commissure develops speech recognition and other data-capture software specifically for medical imaging labs. The deal enables Nuance to provide a fuller suite of software for the radiology market.

Friedman Billings analyst Daniel Ives estimated that Nuance paid $4 million for the company. But the deal is Nuance's sixth in 2007 and brings its total acquisition outlay to between $775 million and $800 million, Ives said in an interview. The company is using acquisitions to expand its product portfolio, rather than to buy market share.

Nuance is by far the leader in voice-recognition software, with nearly 66% of the market in 2006, according to Gartner. The company's nearest competitor, LumenVox, has 7.8%, while IBM (IBM) has 6.6% and Microsoft (MSFT) has 3.2%.

Although a small transaction that should have a "negligible financial impact," the deal beefs up Nuance's healthcare product suite, Ives said in a research note Tuesday.

The acquisition will enable Burlington, Mass.-based Nuance to speed its transcription process while reducing costs, "hitting a major pain point of current healthcare customers worldwide," Ives wrote. FBR makes a market in shares of Nuance.

Shares of Nuance were recently down 7 cents, or 0.4%, to $19.32. The stock trades at 25 times 2008 expected EPS of 78 cents.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs