BOSTON (05/24/2000) - Netherlands-based Philips Electronics NV said yesterday that it will pay US$1.2 billion to acquire a 60 percent stake in medical transcription services firm MedQuist Inc., in Marlton, New Jersey.
Philips will pay $51 per share.
As part of the deal, MedQuist and Philips have agreed to jointly develop speech-recognition technology, which the companies plan to roll out between 2001 and 2005, as well as hire more transcription editors.
In a statement, Philips said that the acquisition will allow it to expand MedQuist's services over broadband networks. In addition, Philips' voice-recognition technologies can improve the quality of MedQuist's conversion of dictated medical records into text, the companies said.
Both Philips Medical Systems, which provides x-ray, diagnostic imaging and ultrasound systems, as well as MedQuist primarily serve hospital radiology departments that often use medical transcription services to interpret x-ray reports.