Editor’s take: Microsoft might have struck out with Cortana however is getting a mulligan with Nuance. Redmond is simply speaking healthcare purposes proper now however we would not be shocked to see Nuance tech present up in different Microsoft-owned merchandise like Teams down the street.
Microsoft has agreed to buy speech recognition and synthetic intelligence specialist Nuance in a bid to strengthen its cloud and AI-based healthcare enterprise.
Microsoft stated the all-cash deal is valued at $19.7 billion, or $56 per share – representing a 23 p.c premium over Nuance’s most up-to-date closing worth. Once full, it’ll be Microsoft’s second-largest acquisition ever, after the $26.2 billion it paid for LinkedIn in 2016.
Nuance has been a frontrunner within the discipline of voice recognition for years, resulting in widespread adoption in healthcare. According to Microsoft’s press launch, Nuance merchandise are used for scientific documentation by 55 p.c of physicians and 75 of radiologists within the US.
Commercially, nevertheless, Nuance is arguably finest identified for its Dragon speech recognition software program. What you could not know is that Apple’s Siri voice assistant was additionally rooted in tech supplied by Nuance.
Microsoft said it expects the transaction to shut in the course of the present calendar 12 months, pending regulatory approval and different customary closing situations. Nuance CEO Mark Benjamin will stick with the corporate in his present position and report back to Scott Guthrie, who’s the manager vice chairman of Microsoft’s cloud and AI enterprise. Financials from the division will likely be reported below Microsoft’s Intelligent Cloud phase, we’re instructed.