Microsoft in advanced talks to buy Nuance for about $16 billion, announcement could come Monday

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Microsoft CEO Satya Nadella speaks during the Future Decoded Tech Summit successful Bengaluru, India, connected Feb. 25, 2020.

Samyukta Lakshmi | Bloomberg | Getty Images

Microsoft is successful precocious talks to get speech-recognition institution Nuance Communications, a idiosyncratic acquainted with the discussions told CNBC connected Sunday. A transaction could beryllium signed arsenic aboriginal arsenic Sunday and announced arsenic soon arsenic Monday, the idiosyncratic said.

The plans exemplify Microsoft's caller efforts to grow done deals. Microsoft considered buying the U.S. operations of video-sharing app TikTok past year, and past period it completed the $7.5 cardinal acquisition of video crippled shaper Zenimax.

Nuance would beryllium much 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 successful the 4th quarter, with gross declining 4% connected an annualized basis. Nuance was founded successful 1992, with 7,100 employees arsenic of September.

Microsoft archetypal approached Nuance successful December, the idiosyncratic said, and is consenting to wage astir $56 per stock for Nuance, the idiosyncratic said. That would springiness Nuance an equity worth of astir $16 billion, representing a 23% premium implicit the stock's Friday closing terms of $45.58 per share.

Bloomberg reported connected Microsoft's plans to bargain Nuance earlier connected Sunday. Microsoft declined to comment. A Nuance typical didn't instantly respond to a petition for comment.

At $16 billion, Nuance would beryllium Microsoft's 2nd largest acquisition, aft the $27 cardinal acquisition of LinkedIn successful 2016.

Buying Nuance could grow Microsoft's capabilities successful dependable software. Microsoft already has tools that developers tin usage to alteration applications to transcribe code into written words, and it incorporates code designation into its ain products, specified arsenic the Bing hunt motor and the Teams connection app.

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