UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 3)
Under the Securities Exchange Act of 1934*
NUANCE COMMUNICATIONS, INC.
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(Name of Issuer)
Common Stock, $0.001 Par Value
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(Title of Class of Securities)
80603P107
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(CUSIP Number)
Scott A. Arenare, Esq.
Managing Director and General Counsel
Warburg Pincus LLC
466 Lexington Avenue
New York, New York 10017
(212) 878-0600
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copies to:
Michael A. Schwartz, Esq.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019-6099
(212) 728-8000
August 29, 2006
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(Date of Event which Requires
Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box: [ ]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
SCHEDULE 13D
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CUSIP No. 80603P107
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----------- --------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION
Warburg Pincus Private Equity VIII, L.P.
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
----------- --------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
---------------------------- --------- -----------------------------------------
7 SOLE VOTING POWER
0
--------- -----------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 42,277,057 (see Items 4 and 5)
OWNED BY EACH --------- -----------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH
0
--------- -----------------------------------------
10 SHARED DISPOSITIVE POWER
42,277,057 (see Item 5)
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
42,277,057 (see Item 5)
----------- --------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
23.5% (see Item 5)
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
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SCHEDULE 13D
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CUSIP No. 80603P107
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION
Warburg Pincus & Co.
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
N/A
----------- --------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
---------------------------- --------- -----------------------------------------
7 SOLE VOTING POWER
0
--------- -----------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 42,277,057 (see Items 4 and 5)
OWNED BY EACH --------- -----------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH
0
--------- -----------------------------------------
10 SHARED DISPOSITIVE POWER
42,277,057 (see Item 5)
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
42,277,057 (see Item 5)
----------- --------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
23.5% (see Item 5)
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
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SCHEDULE 13D
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CUSIP No. 80603P107
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----------- --------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION
Warburg Pincus LLC (f/k/a E.M. Warburg Pincus & Co., LLC)
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
N/A
----------- --------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
---------------------------- --------- -----------------------------------------
7 SOLE VOTING POWER
0
--------- -----------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 42,277,057 (see Items 4 and 5)
OWNED BY EACH --------- -----------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH
0
--------- -----------------------------------------
10 SHARED DISPOSITIVE POWER
42,277,057 (see Item 5)
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
42,277,057 (see Item 5)
----------- --------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
23.5% (see Item 5)
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
OO
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SCHEDULE 13D
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CUSIP No. 80603P107
-----------------------------------------------------------
----------- --------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION
Warburg Pincus Partners LLC
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions) (a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS (See Instructions)
WC
----------- --------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
---------------------------- --------- -----------------------------------------
7 SOLE VOTING POWER
0
--------- -----------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 42,277,057 (see Items 4 and 5)
OWNED BY EACH --------- -----------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH
0
--------- -----------------------------------------
10 SHARED DISPOSITIVE POWER
42,277,057 (see Item 5)
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
42,277,057 (see Item 5)
----------- --------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (See Instructions) [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
23.5% (see Item 5)
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
PN
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This Amendment No. 3 to Schedule 13D ("Amendment No. 3") amends the
Schedule 13D originally filed on April 19, 2004 ("Original 13D") as amended by
Amendment No. 1 to Schedule 13D ("Amendment No. 1") filed on May 5, 2005 and by
Amendment No. 2 to Schedule 13D ("Amendment No. 2") filed on September 15, 2005
(as so amended, the "Amended 13D"), each filed on behalf of Warburg Pincus
Private Equity VIII, L.P., a Delaware limited partnership ("WP VIII"), Warburg
Pincus & Co., a New York general partnership ("WP"), Warburg Pincus LLC, a New
York limited liability company ("WP LLC") and, with respect to Amendment No. 1
and Amendment No. 2, Warburg Pincus Partners LLC, a New York limited liability
company ("WPP LLC" and, together with WP VIII, WP and WP LLC, the "Warburg
Pincus Reporting Persons"). This Amendment No. 3 relates to the common stock,
par value $0.001 per share, of Nuance Communications, Inc., a Delaware
corporation formerly known as ScanSoft, Inc. (the "Company"). The holdings of
the Warburg Pincus Reporting Persons reported in this Amendment No. 3 include
the holdings of Warburg Pincus Netherlands Private Equity VIII, C.V. I ("WPNPE
I") and Warburg Pincus Germany Private Equity VIII K.G. ("WPGPE" and together
with WP VIII and WPNPE I, the "Investors"), which shares the Warburg Pincus
Reporting Persons may be deemed to beneficially own.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 of the Amended 13D is hereby amended and restated in its entirety as
follows:
The total amount of funds used by each Investor to purchase the securities
of the Company as described herein was furnished from the working capital of
such Investor. The total amount of funds used by the Investors to purchase the
securities of the Company as described herein was $170,062,401.70, including all
commissions.
Item 4. Purpose of Transaction.
Item 4 of the Amended 13D is hereby amended by adding the following to the
end thereof:
From August 14, 2006 through August 29, 2006, the Investors acquired
1,706,000 shares of Common Stock in open market purchases on the New York Stock
Exchange through a securities broker.
Item 5. Interest in Securities of the Issuer
Items 5(a), (b) and (c) of the Amended 13D are hereby amended and restated
in their entirety as follows:
(a) Due to their respective relationships with the Investors and each
other, as of August 29, 2006, each of the Warburg Pincus Reporting Persons may
be deemed to beneficially own, in the aggregate, 31,648,281 shares of Common
Stock by virtue of the Investors' ownership of such shares as of such date. As
of August 29, 2006, the Warburg Pincus Reporting Persons may also be deemed to
own additional shares of Common Stock by virtue of the Investors' ownership of
the Series B Preferred Stock, the Adjustable Warrant, the March 15 Warrants, the
Securities Purchase Warrants and the Stock Purchase Warrants (collectively, the
"Convertible Securities"). Assuming the full exercise and conversion of the
Convertible Securities (accounting only for the 525,732 shares of Common Stock
that are presently exercisable under the Adjustable Warrant, according to the
Company's Form 10-Q for the quarter ended June 30, 2006 (the "Form 10-Q"), the
Warburg Pincus Reporting Persons are deemed to beneficially own 42,277,057
shares of Common Stock, representing approximately 23.5% of the outstanding
class of Common Stock, based on a total of 179,591,173 shares of Common
-2-
Stock outstanding, which is comprised of: (i) 168,962,397 shares of Common Stock
outstanding as of July 31, 2006, as represented by the Company in the Form 10-Q,
(ii) the 3,562,238 shares of Common Stock issuable upon the conversion of the
3,562,238 shares of Series B Preferred Stock acquired by the Investors, (iii)
the 525,732 shares of Common Stock presently issuable upon the exercise of the
Adjustable Warrant, (iv) the 2,500,000 shares of Common Stock issuable upon the
exercise of the March 15 Warrants, (v) the 863,236 shares of Common Stock
presently issuable upon the exercise of the Securities Purchase Warrants, and
(viii) the 3,177,570 shares of Common Stock presently issuable upon the exercise
of the Stock Purchase Warrants.
(b) Each of the Investors share the power to vote or to direct the vote and
to dispose or to direct the disposition of the 42,277,057 shares of Common Stock
it may be deemed to beneficially own as of August 29, 2006. Each of WP, WP LLC
and WPP LLC shares with the Investors the power to vote or to direct the vote
and to dispose or to direct the disposition of the 42,277,057 shares of Common
Stock it may be deemed to beneficially own as of August 29, 2006. Charles R.
Kaye and Joseph P. Landy are Managing General Partners of WP and Managing
Members and Co-Presidents of WP LLC and may be deemed to control the Warburg
Pincus Reporting Persons. Messrs Kaye and Landy disclaim beneficial ownership of
all shares held by the Warburg Pincus Reporting Persons.
(c) Schedule A hereto sets forth certain information with respect to
transactions by the Investors in the Common Stock during the past sixty days.
All of the transactions set forth on Schedule A were effected in open
market transactions on the New York Stock Exchange through a securities broker.
-3-
Except as set forth on Schedule A, during the last sixty days there were no
transactions in the Common Stock effected by the Warburg Pincus Reporting
Persons, nor, to the best of their knowledge, any of their directors, executive
officers, general partners or members.
-4-
Schedule A
(Transactions by the Investors in the Common Stock during the last sixty days)
Date Transaction Shares Price Per Share(1)
---- ----------- ------ ------------------
8-14-2006 Buy 187,177 7.80
8-14-2006 Buy 160,907 7.79
8-14-2006 Buy 38,301 7.78
8-14-2006 Buy 25,507 7.77
8-14-2006 Buy 22,379 7.76
8-14-2006 Buy 34,185 7.75
8-14-2006 Buy 26,957 7.74
8-14-2006 Buy 4,587 7.73
8-15-2006 Buy 84,908 8.00
8-15-2006 Buy 124,221 7.99
8-15-2006 Buy 38,227 7.98
8-15-2006 Buy 146,595 7.97
8-15-2006 Buy 77,609 7.96
8-15-2006 Buy 16,850 7.95
8-15-2006 Buy 6,890 7.94
8-15-2006 Buy 1,200 7.91
8-15-2006 Buy 6,500 7.90
8-16-2006 Buy 242,075 8.00
8-16-2006 Buy 12,645 7.99
8-16-2006 Buy 7,940 7.98
---------------------
(1) Excludes brokerage commissions.
-5-
8-16-2006 Buy 232,740 7.97
8-16-2006 Buy 2,384 7.96
8-16-2006 Buy 4,619 7.95
8-16-2006 Buy 597 7.94
8-28-2006 Buy 20,000 7.68
8-28-2006 Buy 15,776 7.67
8-28-2006 Buy 33,000 7.66
8-28-2006 Buy 8,819 7.65
8-28-2006 Buy 1,000 7.63
8-28-2006 Buy 1,800 7.61
8-28-2006 Buy 19,205 7.60
8-28-2006 Buy 400 7.59
8-29-2006 Buy 45,458 7.50
8-29-2006 Buy 25,440 7.49
8-29-2006 Buy 22,702 7.48
8-29-2006 Buy 6,400 7.47
-6-
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: August 29, 2006 WARBURG PINCUS PRIVATE EQUITY VIII,
L.P.
By: Warburg Pincus Partners LLC,
its General Partner
By: Warburg Pincus & Co.,
its Managing Member
By: /s/ Scott A. Arenare
------------------------------------
Name: Scott A. Arenare
Title: Partner
Dated: August 29, 2006 WARBURG PINCUS & CO.
By: /s/ Scott A. Arenare
------------------------------------
Name: Scott A. Arenare
Title: Partner
Dated: August 29, 2006 WARBURG PINCUS LLC
By: /s/ Scott A. Arenare
------------------------------------
Name: Scott A. Arenare
Title: Member
Dated: August 29, 2006 WARBURG PINCUS PARTNERS LLC
By: Warburg Pincus & Co.,
its Managing Member
By: /s/ Scott A. Arenare
------------------------------------
Name: Scott A. Arenare
Title: Partner