Thomson Reuters
Summary List PlacementMicrosoft has agreed to buy the AI and voice communications firm Nuance for $19.7 billion.
The deal, expected to close at the end of the year, would value Nuance at $56 per share, implying a premium of 23% to the stock's closing price on April 9.
Nuance is Microsoft's second largest acquisition after its $24 billion purchase of LinkedIn in 2016.
Nuance's speech recognition engine is the basis for Apple's voice assistant Siri, and the company has developed Dragon Naturally Speaking voice technology products.
Microsoft intends to integrate Nuance's technology into its healthcare-specific cloud strategy. More than half of physicians and 77% of US hospitals use Nuance's technology, according to a release. Revenue for Nuance's Healthcare Cloud grew 37% year-over-year at the end of 2020.
"Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI," Microsoft CEO Satya Nadella said in a statement. "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 in Healthcare and Nuance."
NOW WATCH: Why electric planes haven't taken off yet
See Also: