Microsoft just acquired Nuance, a cloud and AI software leader for healthcare and enterprise AI experience. Microsoft has paid $56 per share, with a total of $19.7 Billion. The total addressable market of Microsoft stands at $500 Billion after this. The CEO of Nuance will be the same, and hopefully, the work methods will also be in their flow. The acquisition marks a newer step for the ‘Microsoft Cloud for Healthcare’ announced last year.
Nuance is a text-to-speech industry leader whose products include Dragon Ambient eXperience, Dragon Medical One, and PowerScribe One for radiology reporting. Their solutions are expected to work seamlessly with core healthcare systems. Nuance currently occupies almost 77% of US hospitals with their products. It is also the full-service partner trusted by 85% of the Fortune 100 Companies worldwide.
Nuance creates intuitive solutions that amplify people’s ability to help others.
The Relation between Microsoft and Nuance
Microsoft and Nuance partnered together for the first time in 2019 to let AI focus on administrative tasks and doctors on patients. Microsoft hopes to do the same with this acquisition and provide a better clinical intelligence along with other services of Microsoft Cloud. The primary focus remains on data privacy, security, and compliance, as Microsoft notes.
Besides helping Microsoft Cloud for Healthcare, Nuance’s other services include providing better AI expertise and customer engagement solutions across IVR, virtual assistants, and digital solutions, etc.
“Over the past three years, Nuance has streamlined its portfolio to focus on the healthcare and enterprise AI segments, where there has been accelerated demand for advanced conversational AI and ambient solutions,” said Mark Benjamin, CEO, Nuance. “To seize this opportunity, we need the right platform to bring focus and global scale to our customers and partners to enable more personal, affordable, and effective connections to people and care. The path forward is clearly with Microsoft — which brings intelligent cloud-based services at scale and shares our passion for the ways technology can make a difference. At the same time, this combination offers a critical opportunity to deliver a meaningful and certain value to our shareholders who have driven and supported us on this journey.”
With this, the transaction is expected to close by this calendar year.
Upon closing, Microsoft will take care of Nuance’s expenses under the banner of their Intelligent Cloud segment. Nuance will be reporting to Scott Guthrie, executive vice president of Cloud & AI at Microsoft.