L&H finalizes Fonix purchase

October 1, 1999

L&H finalizes Fonix purchaseConsolidation continues in the speech-recognition sector. Lernout & Hauspie Speech Products has completed its acquisition of the Healthcare Solutions Group of fellow speech recognition firm Fonix, which has

L&H finalizes Fonix purchase

Consolidation continues in the speech-recognition sector. Lernout & Hauspie Speech Products has completed its acquisition of the Healthcare Solutions Group of fellow speech recognition firm Fonix, which has now exited the healthcare market. The deal combines Fonix’s customer base, sales and marketing staff, and PowerScribe Radiology and Emergency Medicine speech-recognition products with L&H, which also features department-oriented medical-dictation products.

L&H paid $24 million for the Fonix business, plus future payments of up to $4 million over two years, based on performance. Fonix’s Healthcare Solutions Group was formed last year following the company’s acquisition of Articulate Systems and the PowerScribe business unit of the MRC Group (PNN 10/98).

Some 40 employees from Fonix are expected to become part of the L&H Healthcare Solutions Group, which will remain in Burlington, MA. Articulate Systems founder Ivan Mimica will assume the role of group vice president of Healthcare Solutions at L&H and will report to Anatoly Tikhman, president of L&H’s Speech and Language Applications division.