Ricci estimated the recent buys of Quantim and JATA would add $100m in 2013 rev. or approx. 1/5 their cost estimated at $550m.
"From CC transcript, organic revenues grew around 5% last year, and mgmt has projected 13% organic growth this year. So revenues from companies bought contributed 23% to the total of 28% revenue growth in 2012, and are forecast to be a lower percentage next year."
"Nuance reported non-GAAP revenue of $1,738.1 million, which includes $86.6 million in revenue lost to accounting treatment in conjunction with acquisitions. Fiscal 2012 non-GAAP revenue grew 24.7% over non-GAAP revenue of $1,393.9 million in fiscal 2011.
Rev. grew by approx. $345m of which 23% could be attributable to acquisitions made in 2011?
Call it $85m?
Cost of 2011 acquisitions
Equitrac--- Stated at $157m
SVOX----Unknown ( Loquendo cost 53m , guessing same for SVOX)
WEBMDX---- Unknown (Has contracts with over 100 hospitals)
My best guess at the six 2011 acquisitions was approx. a minimum of $500m.
Again, it's falling around 5X rev. paid for the NUAN acquisitions.
Just trying to get an idea of the parameters Ricci is using for this "roll up'.
Doing some quick research, it appears that 5X revenue is above the softwre industry average of about 3X revenue. But I may be wrong. Paying above the average would indicate hopes of some significant synergy with existing operations - which is what Ricci is claiming.