Microsoft in Talks to Buy Nuance for $16 Billion, expand Healthcare Business
By Sanjay Kumar
News Highlights
- Microsoft would buy Nuance Communications Inc for about $16 billion.
- Microsoft, an American multinational companies look forward to expanding cloud solutions for healthcare customers.
- This deal would be Microsoft’s 2nd biggest deal for the company after its $26.2 billion acquisition of LinkedIn in 2016.
Microsoft expands cloud healthcare business with Nuance
Microsoft Corporation is a multinational American technology organization with headquarters in Redmond, Washington. On Monday, Company announced that “we are in talk to buy artificial intelligence and speech technology firm Nuance Communications Inc for about $16 billion, as it expands cloud solutions for healthcare customers”.
The deal comes after the organization partnered in 2019 to robotize clinical administrative work like documentation. It shows Microsoft’s desire to extend its administration into an industry where digital advance changes have picked up speed during the covid-19 pandemic. Medical care providers have put more effort into technology to boost productivity and digital health services.
Nuance is a multinational American computer software technology corporation, Once offering voice recognition technologies across the industries, currently, the company focus on healthcare and enterprise AI after spinning off and selling various less profitable business units.
Microsoft CEO Satya Nadella said, “This acquisition brings our innovation directly into the physician and patient loop, which is a fundamental of all healthcare delivery. The acquisition will also expand our administration across the industry enterprise AI and biometric security”.
Microsoft’s proposal of $56 per share addresses a premium of 22.86 percent to Nuance’s closing price on 9th April. The shares acquired16% to close at $52.85 on 12th April.
Last year, Tech giants like IBM & Amazon have been partnering with health systems to analyze patients’ medical records to develop new solutions. Microsoft focus to use the data to develop cancer algorithms.
This deal would be Microsoft’s 2nd biggest deal for the company after its $26.2 billion acquisition of LinkedIn in 2016. Including net debt, the all-cash transaction is valued at $19.7 billion.
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