Nuance Communications To Buy TouchCommerce For $215 Mln

(RTTNews) - Nuance Communications, Inc. (NUAN) announced that it has signed a definitive agreement to acquire TouchCommerce, a technology partner and leader in digital customer service and engagement solutions, for total consideration of $215 million.

The transaction has been approved by both companies' Boards of Directors and is expected to close by the end of Nuance's fiscal year 2016. At closing, Nuance will pay $110 million in cash and $85 million in a combination of cash and Nuance common stock determined by Nuance, and the remaining $20 million will be paid at the conclusion of an indemnity period.

The transaction is not expected to have a material impact on Nuance's fiscal 2016 revenues. In fiscal 2017, TouchCommerce is expected to add at least $60 million in GAAP revenue and at least $70 million in non-GAAP revenue, and add at least a percentage point to overall corporate organic growth.

In fiscal 2016, Nuance expects the transaction to be accretive to GAAP EPS by $0.07 and neutral to non-GAAP EPS. In fiscal 2017, Nuance expects the transaction to be dilutive to GAAP EPS by $(0.07) and neutral to non-GAAP EPS.