PEABODY, Mass.-Speech recognition companies ScanSoft Inc. and SpeechWorks International Inc. announced they will merge, with ScanSoft purchasing all outstanding common stock of SpeechWorks in a transaction valued at approximately $132 million.
Upon completion of the merger, ScanSoft expects to have total assets of $386 million, including $60 million in cash. Headcount reductions, office site consolidations and reductions in marketing and administrative expenses are expected to lead to a savings of approximately $27 million.
“The combined organization gives ScanSoft the resources to lead the speech industry with a diverse and proven set of assets,” said Paul Ricci, chairman and chief executive officer of ScanSoft. “With this transaction, ScanSoft’s innovative technologies and solutions, broad channels, professional services expertise, strong management and talented employees will allow us to accelerate the development and adoption of innovative speech-enabled applications and services worldwide.”
The transaction, which has been approved by the boards of directors of both companies but is awaiting regulatory and shareholder approval, is expected to close by Aug. 1.
