ScanSoft deal unveiled
Speech and language vendor to acquire SpeechWorks in $132m deal
Speech and language software vendor ScanSoft has signed a "definitive agreement" to acquire rival vendor SpeechWorks.
The deal, worth about $132m, will see ScanSoft issue 32.6 million shares of its common stock to SpeechWorks shareholders.
The acquisition is expected to be completed by 1 August and will give ScanSoft £386m in assets and a presence in 70 countries.
Research firm SRI Consulting Business Intelligence claimed that government spending on voice technology will reach $20bn in 2005 and $40bn by 2007.
Mark Erwich, marketing director international at ScanSoft, said the merger will not affect ScanSoft's reseller relationships.
"ScanSoft is committed to its partners, especially in the UK, where we work with resellers to bring our solutions to market. This deal will not change our channel strategy," he said.
Stuart Patterson, chief executive of SpeechWorks, said: "We look forward to combining our resources with ScanSoft.
"Our collective expertise and global network of partners will enable us to provide speech products to even more customers."