UPDATE 1-Nuance to buy Transcend Services for $300 mln

March 7 Wed Mar 7, 2012 8:26am EST

March 7 (Reuters) - Speech-recognition software maker Nuance Communications Inc said it will acquire smaller rival Transcend Services Inc for about $300 million in cash, to expand its customer base in the small- to mid-size hospital market.

The $29.50 a share offer is at a 40 percent premium to Transcend's Tuesday close on the Nasdaq.

The deal, which is expected to close in the second half of fiscal 2012, will add between 8 cents and 9 cents a share to adjusted earnings, and $140 million to $150 million in revenue in fiscal 2013.

Shares of Nuance rose more than 1 percent to $25.80 in trading before the bell. They closed at $25.50 Tuesday on the Nasdaq.

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