News this morning tells us that Dictaphone has formally contracted to sign its $38.5 million call recording business over to NICE Systems to allow the company to dedicate more of its resources to its lucrative Healthcare Solutions Group.
The Healthcare Solutions Group provides speech technologies to the broad spectrum of the healthcare industry for dictation, transcription and voice recognition products. Dictaphone's current product line in this market provides speech solutions to over half the hospitals in the U.S.
Dictaphone plans to retain its Integrated Voice Systems and other business units.
DICTAPHONE TO SELL COMMUNICATION RECORDING SYSTEMS
BUSINESS TO NICE SYSTEMS
Stratford, CT, April 11, 2005 -- Dictaphone Corporation announced today that it has signed a definitive agreement with NICE Systems (NASDAQ: NICE) under which NICE will acquire the assets of Dictaphone’s Communication Recording Systems (CRS) business for $38.5 million. The CRS unit is a leading provider of recording systems for 9-1-1 centers and other mission-critical operations in the public safety, financial, and call center markets. The boards of both companies have unanimously approved the transaction, which is expected to close by the end of the second quarter of 2005, subject to certain closing conditions.
Dictaphone’s sale of the CRS unit is part of its strategy to create a company focused principally on the healthcare information technology market. Dictaphone’s Healthcare Solutions Group deploys dictation, transcription and speech recognition software systems in over half of the hospitals in the
“For several years, we have experienced strong growth and developed an industry leading product portfolio based on speech recognition and natural language processing technologies in our healthcare business,” said Rob Schwager, Chairman and Chief Executive Officer, Dictaphone Corporation. “Seeing the tremendous opportunity in the healthcare IT market along with Dictaphone’s excellent position within it, we determined that this was an appropriate time to focus our personnel, investment and other resources mainly on our healthcare business. I am pleased that the CRS business has found a good home with an industry leader such as NICE Systems.”
Dictaphone will retain its Integrated Voice Systems and other business units. The Company intends to use the proceeds of the CRS sale to continue the pursuit of its healthcare information technology growth strategy and to prepay a portion of its subordinated debt.
Dictaphone, ranked 26th in Healthcare Informatics ranking of top 100 companies by healthcare revenue, is the leading provider of dictation, transcription, speech recognition and natural language processing systems in the healthcare market. Dictaphone's Integrated Voice Systems division is the leading provider of highly scalable dictation systems focused upon the public safety and legal markets.