Dive Brief:
Microsoft is acquiring clinical documentation and artificial intelligence company Nuance Communications for $19.7 billion, two years after first inking an R&D partnership with the speech-to-text market leader.
The Redmond, Washington-based tech giant said Monday it has entered into a definitive agreement to acquire Nuance for $56 a share a hefty price tag, representing a 23% premium on the closing price on Friday. Nuance develops conversational artificial intelligence and cloud-based ambient clinical intelligence for doctor s offices and hospitals.
The all-cash deal, which Microsoft says will double its total addressable market in the healthcare provider space, is expected to close this calendar year. Shares of Nuance were up 18% Monday morning.
"Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI," said Microsoft CEO Satya Nadella.
Microsoft buying speech recognition firm Nuance in $16B deal - Business News castanet.net - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from castanet.net Daily Mail and Mail on Sunday newspapers.
Michelle Chapman And Matt O Brien
FILE - In this Nov. 10, 2016, file photo, people walk near a Microsoft office in New York. Microsoft, on an accelerated growth push, is buying speech recognition company Nuance in a deal worth $19.7 billion including debt. (AP Photo/Swayne B. Hall, File) April 12, 2021 - 8:30 AM
Microsoft, on an accelerated growth push, is buying speech recognition company Nuance in a deal worth about $16 billion.
Microsoft will pay $56 per share cash. That s a 23% premium to Nuance s Friday closing price. The companies value the transaction including debt at $19.7 billion.
Shares of Burlington, Massachusetts-based Nuance surged more than 17% in Monday morning trading.