Microsoft announced Monday it will acquire AI and speech technology firm Nuance Communications for about $16B in cash, in aim to build its cloud strategy for healthcare.
The deal comes as a result of a previous collaboration of both companies in 2019, when they partnered to automate clinical administrative work such as documentation. Both will gain from a boom in telehealth services with medical consultations shifting online due to the Covid-19 pandemic.
Microsoft’s CEO, Satya Nadella said:
“Nuance provides the AI layer at the healthcare point of delivery. AI is technology’s most important priority, and healthcare is its most urgent application.”
Microsoft’s offer of $56 per share represents a premium of 22.86% to Nuance’s last close. Shares of Nuance rose nearly 23% in pre-market trading.
