ScanSoft Closes Acquisition of Lernout & Hauspie
Speech and Language Assets
PEABODY, Mass. - December 12, 2001
ScanSoft, Inc. (Nasdaq: SSFT), a leading supplier of imaging, speech and language solutions, today announced that it has closed the acquisition of substantially all the operating and technology assets of the Speech and Language Technologies business of Lernout & Hauspie (L&H).
As previously disclosed, consideration for the transaction comprises $10 million in cash, a $3.5 million note and 7.4 million shares of ScanSoft stock. The U.S. Bankruptcy Court for the District of Delaware approved the transaction on December 11, 2001.
"We are delighted to close the transaction and have begun transitioning L&H employees and assets in earnest," said Paul Ricci, ScanSoft's chairman and CEO. "While much work lies ahead, we are especially encouraged by the positive response we've seen from our customers, partners, resellers and employees."
Through this acquisition, ScanSoft expects to strengthen its business within the following areas:
- Employees - ScanSoft believes L&H employees offer a passion and dedication to its business that fits nicely with ScanSoft's mission to be the global leader in its field. The company expects to offer employment to more than 200 L&H employees in the U.S. and abroad.
- Products and Technologies - ScanSoft acquires premier speech and language products and technologies in rapidly growing markets. This robust group of assets includes the industry's foremost text-to-speech technology, the popular Dragon speech recognition software and technology aimed at the rapidly growing telecommunications, automotive and mobile device markets. The technology and intellectual property associated with these assets is widely considered the finest in the industry and represents a strategic growth opportunity for our company.
- Distribution and Channels - ScanSoft and L&H share nearly identical distribution channels, encompassing a global network of software resellers, key OEM partners, Web-based operations and retail outlets. The transaction provides an opportunity to bring additional efficiencies to sales operations, extend OEM relationships, strengthen VAR programs and expand the company's presence in Asian markets.
- Customers - L&H adds a prestigious list of customers to the ScanSoft business. Organizations using these technologies comprise some of the world's leading technology and telecommunications companies including Alcatel SA, AOL Time Warner, British Telecom, Cisco Systems, Delphi Automotive, Deutsche Telecom, Fujitsu Ltd., Microsoft Corporation and Sony Corp.
About ScanSoft, Inc.
ScanSoft, Inc. (Nasdaq: SSFT) is the leading supplier of imaging, speech and language solutions that are used to automate a wide range of manual processes - saving time, increasing worker productivity and improving customer service. For more information regarding ScanSoft products and technologies, please visit www.scansoft.com.
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