Microsoft to Expand Growth in Healthcare With $16 Billion
The deal for Nuance would be Microsoft's second-biggest, after its $26.2 billion acquisition of LinkedIn in 2016
Microsoft Corporation announced to buy artificial intelligence and speech technology firm Nuance Communications Inc for $16 billion to accelerate growth in everything from healthcare to video gaming.
“Microsoft would pay $56 per Nuance share, a 23% premium over Friday’s closing price, in a bet on the growing demand for digital tools within healthcare”, reported The Wall Street Journal.
AI is technology’s most important priority, and healthcare is its most urgent application. Together with @NuanceInc, we will put advanced AI solutions into the hands of professionals to drive better decision-making and create more meaningful connections. https://t.co/ipdP6qZTx9
— Satya Nadella (@satyanadella) April 12, 2021
The deal comes after the companies partnered to automate clinical administrative work that shows Microsoft’s ambition to extend its leadership into an industry that has picked up speed during the pandemic.
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Once closed, the deal for Nuance would be Microsoft’s second-biggest, after its $26.2 billion acquisition of LinkedIn in 2016.
Microsoft CEO Satya Nadella maintained, “This acquisition brings our technology directly into the physician and patient loop, which is central to all healthcare delivery. The acquisition will also expand our leadership in cross-industry enterprise AI and biometric security”.
Nuance is known for pioneering speech technology and also helped the launch of Apple Inc’s virtual assistant, Siri.
After offering voice recognition technologies across industries, Nuance is now focusing on healthcare.
As per sources, the company serves 77% of US hospitals, providing intelligent solutions including clinical speech recognition, medical transcription, and medical imaging.
The companies announced that Nuance’s expertise will come together with the breadth and depth of Microsoft’s cloud to deliver next-generation customer engagement and security solutions.
We’re excited to accelerate our industry cloud strategy for healthcare with the acquisition of Nuance, combining solutions and expertise to deliver new cloud and AI capabilities across healthcare and other industries: https://t.co/Cnogsxx3E6 pic.twitter.com/CJF0PFhin1
— Microsoft (@Microsoft) April 12, 2021
