Nuance Communications, Burlington, Mass, announced today that it has acquired Philips Speech Recognition Systems in a $96 million deal that expands Nuance’s reach in Europe.

Philips, based in Vienna, Austria, and with US operations based in Atlanta, offers speech recognition solutions in 25 languages, the most comprehensive language portfolio in healthcare, to meet virtually all medical documentation requirements regardless of location, medical vocabulary or healthcare provider’s native language.

“Nuance has been disciplined and focused in our pursuit of the healthcare opportunity in North America, a strategy that has paid dividends both in our rapid growth and the broad adoption of our solutions,” said Paul Ricci, chairman and CEO at Nuance. “PSRS provides a solid foundation of customers, partners and European language-solutions as we expand our business in Europe and enable broader geographical leverage for Nuance’s portfolio of healthcare products and services.”

The deal is expected to close in early 2009.