Microsoft buying Siri’s AI developer firm Nuance in $16 bn deal

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Microsoft, connected an accelerated maturation push, is buying code designation institution Nuance successful a woody worthy astir USD 16 billion.

Microsoft volition wage USD 56 per stock successful cash. That's a 23 percent premium to Nuance's Friday closing price. The companies worth the transaction including indebtedness astatine USD 19.7 billion.

Shares of Burlington, Massachusetts-based Nuance surged much than 17 percent successful Monday greeting trading.

Microsoft's acquisition of Nuance comes aft the companies formed a concern successful 2019. The Redmond, Washington, institution said that the woody volition treble its full addressable marketplace successful the wellness attraction supplier industry, bringing its full addressable marketplace successful wellness attraction to astir USD 500 billion.

Nuance's products see the Dragon Ambient eXperience, Dragon Medical One, and PowerScribe One for radiology reporting, each objective code designation SaaS offerings built connected Microsoft Azure. The company's products are presently utilized by much than 55 percent of physicians and 75 percent of radiologists successful the US, and by 77 percent of US Hospitals. Its wellness attraction unreality gross experienced 37 percent year-over-year maturation successful fiscal 2020.

AI is technology's astir important priority, and healthcare is its astir urgent application, Microsoft CEO Satya Nadella said successful a statement.

Aside from wellness care, Nuance provides AI expertise and lawsuit engagement solutions crossed interactive dependable response, virtual assistants, and integer and biometric solutions to companies successful each industries. This volition articulation with Microsoft's cloud, including Azure, Teams, and Dynamics 365, to present next-generation lawsuit engagement and information solutions.

The transaction is Microsoft's second-largest woody pursuing its USD 26 cardinal acquisition of LinkedIn successful 2016. Last September, it bought video crippled shaper ZeniMax for USD 7.5 billion.

This is the close acquisition astatine the close clip with Microsoft doubling down connected its wellness attraction initiatives implicit the coming years, Wedbush expert Daniel Ives wrote successful a enactment to clients.
Ives said the transaction fits good into Microsoft's wellness attraction portfolio and comes astatine a clip that hospitals and doctors are embracing next-generation AI capabilities.
Mark Benjamin volition proceed arsenic Nuance CEO.

The transaction is expected to adjacent this year. It inactive needs support from Nuance shareholders.