How is Nuance Communications doing in 2016

Officially confirmed: Microsoft is taking over Nuance for $ 19.7 billion

With the purchase of Nuance Communications, known among other things for its AI-based speech recognition software Dragon NaturallySpeaking, Microsoft is planning the second largest acquisition in the company's history. An initial agreement can already be made this week.

Acquisition of Nuance should be imminent

Like the news agency Bloomberg citing informed circles on Sunday evening announced that Microsoft intends to take over the speech recognition and artificial intelligence experts Nuance for an already negotiated price of 56 US dollars per share. The total volume of the deal would therefore amount to around 16 billion US dollars, making it the second largest acquisition in Microsoft's corporate history. Only the acquisition of the social network LinkedIn cost the Redmond-based company even more in 2016 with around 24 billion US dollars.

Clear tendency - with an open outcome

An agreement could already be announced this week, but the talks could also be broken off without any results, according to an insider Bloomberg.

The rumored purchase price per share would mean a premium of around 23 percent to the share price of Nuance Communications on the last day of trading on the NASDAQ. The company's current market value is around $ 13 billion.

Takeover makes sense and creates synergies

The second largest acquisition in its history would make sense for Microsoft in light of the fact that they have been working with Nuance Communications for a long time in the areas of speech recognition and dialog-oriented AI through deep learning. Especially in the strong growth market of medical speech recognition, Nuance is leading with "Dragon Medical One" and offers the current reference with Dragon Professional Individual and Dragon Home.

Microsoft itself contributes hardware and services such as Microsoft Azure and Azure AI and thus bundles synergies. Microsoft and Nuance are already jointly promoting Ambient Clinical Intelligence (ACI) so that clinical documentation in medical practices and hospitals writes itself.

Microsoft recently took over ZeniMax including Bethesda and paid around 7.5 billion US dollars for it.

Update 04/12/2021 4:54 p.m.
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    ... writes at the interface between editorial team and forum. His topics are content from the forum, open source and Linux.