Nuance to acquire Equitrac
BURLINGTON, Mass.--(BUSINESS WIRE)--Nuance Communications, Inc. (NASDAQ: NUAN) today announced an agreement under which Nuance will acquire Equitrac Corporation, a provider of intelligent print management and cost recovery software. Equitrac solutions have been adopted by more than 25,000 organizations worldwide to implement secure and managed printing for enterprise, global and mobile workforces.
The acquisition expands Nuance’s document imaging portfolio, adding Equitrac’s print management products to Nuance eCopy ShareScan scanning and workflow solutions, and to Nuance OmniPage, PaperPort and PDF Converter Professional desktop applications. The addition of Equitrac also strengthens Nuance’s global channel partnerships with multifunction printer (MFP) vendors, including Canon, Xerox, Konica Minolta, Ricoh and HP – each of whom currently sell both Equitrac print management and Nuance eCopy scanning solutions through their dealers or as part of their Managed Print Services (MPS) portfolios.
“Equitrac expands our ability to provide our customers and MFP partners with solutions that deliver even higher levels of cost savings and office productivity,” said Robert Weideman, senior vice president and general manager of the Nuance Document Imaging Division. “Equitrac delivers proven value in healthcare, financial, legal and educational organizations, and provides secure print capabilities to desktop and mobile global office workers. This complements Nuance’s strengths in mobile and office productivity, and aligns well to Nuance’s key verticals, especially healthcare.”
Equitrac increases the productivity and document security of office workers with the Follow-You® printing solution. Users print documents from their desktop as usual, then use card-swipe or log-in identification at a networked MFP to view and select their documents for on-demand printing. No matter where they go in their organization – an MFP around the corner from their office or at office locations across the globe – the user’s personalized on-demand document selections are instantly available from the MFP touch-screen. In a hospital setting for example, care providers can securely access and print standardized forms or specific patient reports from any MFP or printer on the network – a nurse’s station, physician’s office or emergency room.
“There’s a long history of customers selecting Equitrac as their MFP print management solution and Nuance eCopy as their MFP scanning solution. From day one, the combination of Nuance and Equitrac delivers the best of scanning and best of print management to our customers and partners worldwide,” said Michael Rich, president and CEO, Equitrac Corporation. “Even better, Nuance’s leadership in speech recognition, healthcare solutions and intelligent touch-screen interfaces provide a fertile ground for innovations that promise to deliver breakthrough increases in cost savings and office productivity.”
Under the terms of the agreement, consideration for the transaction is $157 million in cash. The transaction is expected to close late in the fourth quarter of Nuance’s fiscal year 2011, ending September 30, 2011. Nuance expects the acquisition in fiscal 2012 to add between $58 million and $60 million in non-GAAP revenue; $27 million and $29 million in GAAP revenue after adjusting revenue lost to purchase accounting; non-GAAP earnings between $0.04 and $0.05; and a GAAP loss between $(0.05) and $(0.06). See “Discussion of non-GAAP Financial Measures” below for further information.