Microsoft acquires Nuance for $19.7 billion
Microsoft just announced that it will be acquiring cloud and AI software leader Nuance for $19.7 billion.
Under the definitive agreement, Microsoft will pay $56 per share which is a 23% premium over the closing price of Nuance last Friday, 9 April. Mark Benjaming will remain CEO of Nuance and report to Scott Guthrie, executive VP of Cloud & AI at Microsoft.
Nuance is well-known for its conversational AI and cloud-based ambient clinical intelligence solutions. More than 55% of phyiscians, 75% of radiologists and 77 hospitals in the U.S are using its solutions.
By augmenting the Microsoft Cloud for Healthcare, Microsoft is able to better empower healthcare providers and double its total addressable market in the healthcare provider space to nearly $500 billion.
Nuance’s expertise and customer engagement solutions across Interactive Voice Response (IVR), virtual assistants, and digital and biometric solutions, will complement Microsoft’s cloud services such as Azure, Teams to deliver the next generation customer engagement and security solutions.
Microsoft states that the acquisition is aimed to close at the end of the year. This will be Microsoft’s second biggest acquisition after its purchase of LinkedIn in 2016 for $26 billion. It recently acquired ZeniMax Media for $7.5 billion. ZeniMax Media is the parent company of games studio Bethesda Softworks. Bloomberg recently reported that Microsoft is interested to buy gaming-focused chat software Discord for over $10 billion.