February 22, 2007 / 1:22 PM / 12 years ago

UPDATE 1-Nuance Communications to acquire BeVocal for $140 mln

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Feb 22 (Reuters) - Nuance Communications Inc. (NUAN.O), a speech and imaging solutions provider, said it agreed to acquire BeVocal for about $140 million in cash and stock to expand its speech-based customer care solutions for the mobile market.

The deal value was arrived at using Nuance’s Wednesday closing share price of $14.98. Under the terms, Nuance said it will issue about 8.3 million common shares and pay about $15 million in cash.

In a statement, Nuance said the deal, which includes a potential additional payment of up to $60 million, is expected to be neutral to GAAP earnings in 2007 and add 1 cent a share in 2008.

Excluding items, the acquisition is expected to add to earnings by about breakeven to 1 cent a share in 2007 and 5 cents to 6 cents a share in 2008.

Nuance expects the deal, which is expected to close before the end of March, to add between $21 million and $23 million in revenue in 2007 and between $65 million and $70 million in 2008.

BeVocal is a provider of self-service customer care solutions for the mobile communications market. (Reporting by Dilipp S. Nag in Bangalore)

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