Nuance announces sale of HIM transcription and EHR go-live services businesses to accelerate growth as conversational AI market
November 19, 2020
BURLINGTON, Mass., Nov. 18, 2020 /PRNewswire/ -- Nuance Communications, Inc. (NASDAQ: NUAN) today announced the planned sale of the Health Information Management (HIM) Transcription business and the Electronic Health Record (EHR) Go-Live Services business to a new independent company, DeliverHealth Solutions LLC (DeliverHealth), formed by Assured Healthcare Partners® (AHP®) in partnership with Aeries Technology Group (Aeries). The HIM Transcription business includes both Nuance Transcription Services (NTS) and the eScription technology platform. The transaction is expected to be completed in early 2021. Nuance will be a minority shareholder of DeliverHealth and will continue to provide its technology to the company.
The sale provides mutual strategic and commercial benefits for customers, Nuance, and DeliverHealth by:
Giving existing customers continued service quality, newly expanded offerings, and enhancements from DeliverHealth in close collaboration with Nuance
Enabling Nuance to focus its innovation and market resources as a pure-play conversational AI market leader while providing continuity of EHR Go-Live Services and HIM Transcription businesses to existing and new customers via DeliverHealth
Empowering DeliverHealth to leverage a leading position in healthcare professional and technology-enabled services, expand global market share, advance growth plans for the EHR Go-Live and Optimization Services, and provide enhanced HIM technology and services to a worldwide market in partnership with Nuance
Nuance's growth and market leadership in healthcare are driven by the accelerating adoption and development of its core cloud-based AI solutions, including the Nuance® Dragon® Ambient eXperience™ (Nuance DAX™) ambient clinical intelligence (ACI) solution, Nuance Dragon Medical One, Nuance CDE One, and its array of diagnostic imaging solutions such as PowerScribe One™ and PowerShare™.
"The dramatic acceleration in the digital transformation of healthcare continues as organizations deploy the power of conversational AI and deeply integrated cloud-based solutions at scale to address physician burnout, expand patient access, and improve system efficiencies and the revenue cycle," said Mark Benjamin, CEO of Nuance. "With this strategic transaction, we're aligning our resources to increase our market and technical leadership position in high-growth, high-impact areas that help our customers in a transformative way to improve patient care and operational performance. At the same time, we're enabling the medical transcription and EHR Go-Live Services businesses to reach their full potential as a separate, focused company benefiting from the enhanced investment and operational experience of AHP and Aeries and technology support from Nuance."
Michael Clark, current Senior Vice President and General Manager of Provider Solutions at Nuance, will become DeliverHealth's CEO when the transaction closes. "This transaction will allow the EHR Go-Live Services and HIM Transcription businesses to focus on growth and expansion of value-add solutions. The continuing strategic relationship with Nuance, the continuity of leadership, and our people's engagement will ensure that our customers will continue to receive the outstanding service, technology, and value that they have come to expect," said Michael Clark. "The combination of a deeper strategic focus, our partnership with Nuance, the commitment of our team, and the support provided by AHP and Aeries will create a winning formula for our customers and our employees."
The sale demonstrates Nuance's continuing execution to focus R&D investments in the healthcare and enterprise markets – where the company has substantial competitive advantages and opportunities for growth and value creation. In 2019, for example, Nuance sold its document imaging business to Kofax and spun-off its automotive business into Cerence, Inc., an independent, publicly-traded company.
About Assured Healthcare Partners
Assured Healthcare Partners (AHP), an extension of the Assured Investment Management platform, provides capital solutions supporting growth, consolidation, and repositioning opportunities in the healthcare services industry. AHP leverages company and sector-specific research, as well as creative structuring and capital flexibility, to unlock value for portfolio companies and investors. AHP has extensive experience investing in provider-centric businesses, which are DeliverHealth's customer base, including post-acute care facilities, physician groups, multi-site providers, and acute care facilities.
About Aeries Technology Group
Aeries Technology Group offers outsourcing solutions, business process management, and technological advancements to organizations seeking higher operational effectiveness, greater flexibility, and cost savings. The senior management team at Aeries has extensive experience successfully managing, developing, and optimizing healthcare service businesses.
About Nuance Communications
Nuance Communications (NASDAQ: NUAN) is a technology pioneer with market leadership in conversational AI and ambient intelligence. A full-service partner trusted by 90 percent of U.S. hospitals and 85 percent of the Fortune 100 companies worldwide, Nuance creates intuitive solutions that amplify people's ability to help others.
SOURCE Nuance Communications