Philips Buys VCS to Widen Voice Products Portfolio

Computergram International, May 11, 1999

Royal Philips Electronics NV is paying $59m for Voice Control Systems Inc (VCS), a Dallas, Texas-based speech technology company. The move strengthens Philips position in the US market and gives it a product geared to limited vocabulary telephony products and the burgeoning market for speech activated devices in the home and the car. The $4 a share, all-cash offer was accepted by the VCS board in an operation that contrasts strongly with Philips prolonged and at times acrimonious battle to win control of VLSI (CI No 3,653).

VCS is a 20 year-old veteran of the voice technology scene and offers Philips an important asset in software that can operate in 50 languages. The company has also invested heavily in voice verification technology, so the unique characteristics of each person's speech can be used in addition to PIN number to help secure access to sensitive information. Philips claims it now offers the widest range of speech technology products and Ron van den Bos, president and CEO of Philips Speech Products, says it can now offer products a one-stop shop portfolio.

Last week Philips signed an agreement with IBM and both companies will review and license each other's technology and co-operate on language development. VCS also has a partnership with IBM and these deals will be unaffected by the takeover.