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Lernout buys Dictaphone
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March 8, 2000: 3:31 a.m. ET
Belgian speech technology company to pay $912M for transcription aid
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LONDON (CNNfn) - Belgian speech technology company Lernout & Hauspie said Wednesday it is buying closely-held Dictaphone of the U.S. for $912.6 million in stock and assumed debt to extend its reach into technology for the healthcare industry.
Lernout will pay Stonington Partners, the New York private investment fund that owns Dictaphone, 4.75 million Lernout shares, worth $487.6 million at Tuesday's closing price. The Belgian company will also assume Dictaphone's debt of $425 million.
Dictaphone makes dictation and voice management equipment and software used in fields such as medicine and education.
"Dictaphone Corporation gives L&H instant access to the resources to facilitate our launch of an entity dedicated to healthcare solutions," Gaston Bastiaens, president and chief executive, told Reuters.
"This should enable us to create an industry-leading solution utilizing speech and web technology to reduce transcription costs enterprise-wide and effectively manage patient information," Bastiens said.
Dictaphone had revenues of about $350 million in fiscal 1999 with earnings before interest charges and tax of about $30 million.
Stonington agreed to keep 2 million of the Lernout & Hauspie shares for two years and give up its voting rights.
Lernout & Hauspie shares closed at 112.87 euros ($108.36) on the Brussels-based pan European stock market Easdaq on Tuesday. 
--from staff and wire reports
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