Microsoft to buy speech technology company Nuance in $19.7bn deal
Microsoft has agreed to buy Nuance Communications in an all-cash deal valued at $19.7bn.
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Under the terms of the transaction, Microsoft will pay $56 a share for Nuance, which focuses on artificial intelligence and speech technology. The price represents a 23% premium to the closing share price of Nuance on Friday.
The acquisition builds on the existing partnership between the companies that was announced in 2019.
"By augmenting the Microsoft Cloud for Healthcare with Nuance’s solutions, as well as the benefit of Nuance’s expertise and relationships with EHR systems providers, Microsoft will be better able to empower healthcare providers through the power of ambient clinical intelligence and other Microsoft cloud services," Microsoft said.
It added that the deal will double its total addressable market (TAM) in the healthcare provider space, bringing its TAM in healthcare to nearly $500bn.
Microsoft chief executive officer Satya Nadella said: "Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI.
"AI is technology’s most important priority, and healthcare is its most urgent application. Together, with our partner ecosystem, we will put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections, as we accelerate growth of Microsoft Cloud for Healthcare and Nuance."