This acquisition comes as an important step in Microsoft’s effort to provide industry-specific cloud strategies in the healthcare sector which gave rise to the Microsoft Cloud for Healthcare in 2020
Microsoft has announced that it will acquire Nuance Communications, which provides speech recognition software for healthcare, at $56 per share. The entire deal values at around $19.7 billion, which will be an all-cash transaction inclusive of Nuance’s debt.
Microsoft released a statement which informed that Nuance will continue to be headed by its existing Chief Executive Officer Mark Benjamin. The transaction is expected to close by the end of this year once it receives approval from Nuance’s shareholders, the satisfaction of certain regulatory approvals, and other customary closing conditions.
Nuance is a provider of conversational AI and cloud-based ambient clinical intelligence for healthcare providers. Its products include the Dragon Ambient eXperience, Dragon Medical One and PowerScribe One for radiology reporting. These products are currently used by more than 55 per cent of physicians and 75 per cent of radiologists in the US, and by 77 per cent of US hospitals.
This acquisition comes as an important step in Microsoft’s effort to provide industry-specific cloud strategies in the healthcare sector which gave rise to the Microsoft Cloud for Healthcare in 2020, which aims to address the needs of the rapidly transforming and growing healthcare industry.
Nuance also provides AI expertise and customer engagement solutions across Interactive Voice Response (IVR), virtual assistants, and digital and biometric solutions to companies around the world across all industries.
“This expertise will come together with the breadth and depth of Microsoft’s cloud, including Azure, Teams, and Dynamics 365, to deliver next-generation customer engagement and security solutions,” the statement said.
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 growth of Microsoft Cloud for Healthcare and Nuance.”
