Xerox Corp has announced that it will sell a majority stake in its ScanSoft Inc subsidiary to scanner hardware and software company Visioneer Inc, merging it into Visioneer’s software business and creating a company which will keep the ScanSoft name. The merged company will deliver software products to retail, OEM and corporate markets and supply software for Xerox’ networked multifunction product lines. Under the terms of the deal, Visioneer will acquire the ScanSoft stake for a package comprised of common stock, non-voting convertible preferred stock, and the assumption of ScanSoft stock options. No dollar value for the deal was given. After the transaction, which is expected to close in the first quarter of 1999, Xerox will own 45% of ScanSoft, with Visioneer’s current stockholders owning the remaining 55%. ScanSoft headquarters will be in Peabody, Massachusetts, with development centers throughout the US and European operations based in Reading, UK.
