Microsoft Corporation and Nuance Communications Inc. announced a definitive agreement under which Microsoft will acquire Nuance for $ 19.7 billion. The Redmond-based tech giant will pay $ 56 per share, 23% more than its market value at its close at the end of last week. The deal promises to be one of the largest in Microsoft history.
Nuance Communication is a leading US technology company and a pioneer in conversational AI and ambient intelligence technologies. In particular, Nuance develops voice recognition systems, and one of the most famous projects is the Dragon family of software products.
The software uses deep learning algorithms to decode speech and improves accuracy by adapting to the user’s voice. For example, Apple’s personal assistant Siri is based on Dragon and other Nuance designs. According to the press release, 77% of US hospitals and 85% of Fortune 100 companies worldwide trust Nuance’s range of services.
Microsoft’s acquisition of Nuance builds on a successful partnership between the companies that began in 2019. By complementing the Microsoft Cloud for Healthcare with Nuance solutions, and through Nuance’s expertise and relationships with systems vendors Electronic Health Records, Microsoft will expand the e-health marketplace. Microsoft and Nuance are targeting the market in this area will double to nearly $ 500 billion.
“Nuance brings AI to healthcare and is a pioneer in the practical application of enterprise AI,” said Satya Nadella, CEO of Microsoft. “Artificial intelligence is the most important technology priority, and healthcare is the most urgent application. Together with our partner ecosystem, we will place advanced AI solutions in the hands of professionals worldwide to drive better decision-making and create more meaningful connections as we accelerate the growth of Microsoft Cloud for Healthcare and Nuance. ”
The boards unanimously approved the deal of directors of Nuance and Microsoft. It is projected to close by the end of the calendar year and is subject to Nuance shareholder approval, certain regulatory approvals and other normal closure conditions.