Philips Speech sold to Nuance
AMSTERDAM, the Netherlands and
BURLINGTON, Mass. – Royal Philips Electronics announced that it has sold
its speech recognition division, Philips Speech Recognition Systems, to
U.S.-based Nuance Communications, Inc.
Philips transferred ownership of PSRS to Nuance for EUR 65
million (approximately US$95 million) to be paid in cash.
Philips expects to book a net gain of EUR 40 million, to
be accounted for in the financial results of Philips’ Healthcare sector
in the company’s third quarter 2008 results. In 2007, PSRS recorded
sales of approximately EUR 25 million.
Based in Vienna, Austria, PSRS is active in speech recognition
technology for the document creation market, and its main focus is on
the professional medical and legal sectors.
Philips Healthcare provides solutions centered primarily on the
diagnostic and therapeutic needs of patients and their caregivers.
Applications powered by SpeechMagic, the PSRS platform, tend to focus
more on improving document creation and information management, as part
of a hospital’s administrative process, and are therefore not considered
a strategic fit for Philips’ Healthcare business.
The transaction will result in a combination of the strengths of two
leading players in the industry. Commenting on the sale, Marcel Wassink,
CEO of Philips Speech Recognition Systems said: “By teaming up with a
leader in the speech business with a strong track record like Nuance, we
can work together to drive new speech-driven services and help Nuance
reinforce their presence in the European market.”
All of PSRS’s approximately 170 employees – of whom 130 are located in
Austria – will transfer to Nuance as part of the transaction.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a
diversified Health and Well-being company, focused on improving people’s
lives through timely innovations. As a world leader in healthcare,
lifestyle and lighting, Philips integrates technologies and design into
people-centric solutions, based on fundamental customer insights and the
brand promise of “sense and simplicity”. Headquartered in the
Netherlands, Philips employs approximately 133,000 employees in more
than 60 countries worldwide. With sales of EUR 27 billion in 2007, the
company is a market leader in cardiac care, acute care and home
healthcare, energy efficient lighting solutions and new lighting
applications, as well as lifestyle products for personal well-being and
pleasure with strong leadership positions in flat TV, male shaving and
grooming, portable entertainment and oral healthcare. News from Philips
is located at
About Nuance Communications, Inc.
Nuance (NASDAQ: NUAN) is a leading provider of speech and imaging
solutions for businesses and consumers around the world. Its
technologies, applications and services make the user experience more
compelling by transforming the way people interact with information and
how they create, share and use documents. Every day, millions of users
and thousands of businesses experience Nuance’s proven applications and
professional services. For more information, please visit