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Nuance to Buy eScription.

Nuance Communications will acquire eScription Inc., a vendor of transcription, dictation and speech recognition systems, for cash and other considerations totaling $400 million. The acquisition is Nuances largest, surpassing its $357 million buy of Dictaphone in 2006.

The deal also includes private equity firm Warburg Pincus LLC of New York making a $100 million investment in Burlington, Mass.-based Nuance. Nuance will pay $340 million in cash and $23 million in stock for eScription, plus assume vested employee options valued at $37 million.

The acquisition will augment Nuances existing dictation and transcription services for hospitals and other provider ...

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