Microsoft has signed a deal to procure AI and speech-recognition company Nuance Communications in a transaction valued at nearly $20 billion, according to reports. Technology from Burlington, Massachusetts-based Nuance improved Apple’s digital assistant, Siri. The deal would help Microsoft deliver “new cloud and AI abilities across healthcare and other productions.”
- Microsoft said it would acquire Nuance for $56.00 per share, a 23% premium over the stock’s close, in an all-cash transaction valued at $19.7 billion. The deal would be Microsoft’s second-largest acquisition ever, after its $26.2 billion deal to buy LinkedIn in 2016. Nuance CEO Mark Benjamin would continue in his position, reporting to Microsoft’s cloud and AI chief.
- Microsoft CEO Satya Nadella said, “AI is technology’s most important priority and healthcare is its most urgent application. Together, with our partner ecosystem, we will put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections, as we accelerate the growth of Microsoft Cloud in Healthcare and Nuance.”
- Microsoft has invested heavily in artificial intelligence in recent years. Last year, it unveiled an enormous supercomputer for AI work that contained 285,000 processor cores. In 2018, it acquired Xoxco, a startup that develops conversational artificial intelligence, also known as chatbots.
- Nuance Communications, Inc. headquartered in Burlington, Massachusetts, on the outskirts of Boston is the pioneer and leader in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze and respond to human language, amplifying human intelligence.
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