Microsoft buys Nuance Communications in $16 billion deal

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Microsoft CEO Satya Nadella looks connected during a sheet league connected time 3 of the World Economic Forum successful Davos, Switzerland, connected Jan. 24, 2019.

Jason Alden | Bloomberg | Getty Images

Microsoft announced Monday that it volition bargain code designation institution Nuance Communications for $56 per share, astir 23% supra its closing terms Friday. The woody is worthy astir $16 billion.

It's the latest motion Microsoft is hunting for much maturation done acquisitions. The institution is besides reportedly successful talks to buy the chat app Discord for astir $10 billion. On apical of that, Microsoft made an effort to bargain TikTok's U.S. concern past twelvemonth for astir $30 billion earlier the woody was derailed.

The Nuance acquisition represents Microsoft's largest acquisition since it bought LinkedIn for much than $26 cardinal successful 2016. Last month, Microsoft completed its $7.6 cardinal acquisition of gaming institution Zenimax. Shares of Nuance were up astir 23% successful premarket trading Monday, representing astir the aforesaid premium Microsoft plans to wage based connected the closing terms Friday. Trading was halted connected the banal aft that pop.

Nuance would beryllium aligned with the portion of Microsoft's concern that serves businesses and governments. Nuance derives gross by selling tools for recognizing and transcribing code successful doctor's visits, customer-service calls and voicemails.

The institution reported $7 cardinal successful nett income connected astir $346 cardinal successful gross in the 4th quarter of 2020, with gross declining 4% connected an annualized basis. Nuance was founded successful 1992, and had 7,100 employees arsenic of September 2020.

Nuance has a beardown estimation for its dependable designation technology, and it has been considered an acquisition people for companies similar Apple, Microsoft and much for respective years. Microsoft has dependable designation built into galore of its products already, but it has precocious shut down immoderate products featuring its dependable adjunct Cortana.

This communicative is developing.

--CNBC's Alex Sherman and Jordan Novet contributed to this report.