Nuance Communications is to be bought by Microsoft in a $16 billion deal in healthcare push. This artificial intelligence and speed technology firm builds a cloud strategy for healthcare. Microsoft said they will buy Nuance at 56%shares. The company values the transaction process plus the debt the company owns, $19.7 billion.
Microsoft had earlier confirmed this speculation that they are in talks about the acquisition of Nuance. This company is the leading provider of AI and speech technology in the healthcare sector.
Nuance is a Massachusetts-based firm that gained its share value to 17% at the end of the day. The company has the most products based on AI technology, and these technologies are for the health care industry. Nuance communications once helped tech giant Apple to build Siri for their iPhones 4s in 2011. Later that year, Nuance procured the QWERTY swiping application Swype.
55 % of physicians and 75 percent of radiologists in the US, and 77 percent of US hospitals currently utilize the products made by Nuance communications. “AI is technology’s most important priority, and healthcare is its most urgent application,” Microsoft CEO Satya Nadella said in a statement.
Aside from being the health care industry asset, Nuance communications work with other firms as well. They also expertise in customer engagement solutions that support bio-metrics and digital solutions for various industries.
Why is Nuance so necessary for Microsoft?
“This is the right acquisition at the right time with Microsoft doubling down on its health care initiatives over the coming years,” Wed bush analyst Daniel Ives wrote in a note. The tech giant believes in creating next-generation solutions. These technologies will make life easy and engage various humans in the virtual world.
Microsoft will intermingle the cloud with Azure, Teams, and Dynamics 365. This collaboration will help in building future solutions and services. Earlier Microsoft purchased LinkedIn for $26 billion in 2016. And in 2020, the company bought the video maker app Zeni-Max for $7.5 billion.