Update: An agreement has been reached. Microsoft will buy Nuance for $19.7 billion.
Nuance is a voice recognition that helped launch Siri, Apple’s digital assistant. Although Nuance is the main contributor to Siri, it doesn’t handle the AI layers of this assistant. Rather, it only handles the voice recognition part.
But Nuance’s voice recognition technology isn’t available for Apple but the company also works with Samsung and other companies developing voice apps on Android.
Recently, Reuters reported that Microsoft is in talks to buy Nuance Communications.
If the deal is reached, Nuance’s value could reach $56 per share. The report said that an official announcement may be made at any time this week.
Microsoft and Nuance Ongoing Negotiations
The talks are still ongoing. Even though the negotiations are in the advanced stage, both companies could still not reach a deal.
You might not have heard of this name before. But you might have used its technology. As mentioned, Apple’s Siri is using it, even though Apple hasn’t confirmed it.
Its AI and speech recognition technology is also in a wide array of industries, from automotive and healthcare.
This isn’t the first time that both companies work together. In 2019, Microsoft said that it’s collaborating with Nuance to transform healthcare delivery.
By working together, both companies can improve the delivery of ambient clinical intelligence (ACI) technologies.
Nuance has a speech recognition technology optimized for healthcare. It also offers the Dragon Medical platform, which is a processing solution that has been used by over 500,000 physicians in the world.
The partnership will improve Microsoft’s ability to solve healthcare’s important challenges. The technologies aim to improve “productivity and professional satisfaction while allowing doctors to focus on taking care of their patients.”
At the moment, Microsoft is on a spending spree.
Last month, it was reported that it’s in discussions to buy Discord, a chat platform. The deal could be worth over $10 billion. However, Discord could go public if no one would offer an acceptable deal.
In addition to Discord, Microsoft was also rumored to purchase different tech properties. But most of them weren’t completed.
And last year, Microsoft bought ZeniMax Media. It’s the same company that owns Bethesda Softworks. The acquisition was worth $7.5 billion.
Back in 2020, Microsoft was one of the interested companies to purchase TikTok. It happened when the previous administration tried to get this Chinese app to be sold to an American company.
However, the sale was stalled after the Trump regime was over.
Microsoft was also eyeing buying Pinterest. But no deal happened, at least not yet.
A Large Acquisition
If the deal between Microsoft and Nuance would go through, it’ll be one of the Windows-maker’s largest purchases to date. The biggest one was LinkedIn when it purchased it in 2016 for a whopping $26.2 billion.
However, Microsoft’s representatives didn’t comment on this matter. Nuance, on the other hand, didn’t respond to any request for comment.
This year, Nuance’s shares increased 3.4%. With that in mind, the company’s market value is now almost $13 billion.