Nuance Communications, known for its voice recognition solutions, has signed an agreement to acquire eScription, which offers computer-aided medical transcription technology.

Both companies say that their strengths will result in scalable, productive solutions that will further facilitate innovations to transform the way healthcare provider organizations document patient care.

Under the terms of the agreement, total consideration for the transaction is approximately $363 million and comprises $340 million in cash and $23 million in Nuance common stock, plus the assumption of vested employee options with a value of approximately $37 million. The transaction is expected to close in Nuance’s fiscal third quarter 2008 and is subject to customary closing conditions and regulatory approvals.