Microsoft Corporation acquires Nuance Communications

Microsoft Corporation acquired Nuance Communications for $19.7 billion, a transaction announced in April 2021, structured as all cash.

Nuance Communications operates in Cloud & AI / Healthcare, is based in Burlington, Massachusetts, USA. Microsoft agreed to buy Nuance, a maker of conversational-AI and cloud-based ambient clinical documentation tools for healthcare providers (products include Dragon Ambient eXperience, Dragon Medical One and PowerScribe One), for $56.00 per share in cash, about $19.7 billion including net debt. The deal built on a partnership the two firms began in 2019 and folded Nuance into Microsoft's Intelligent Cloud segment, with CEO Mark Benjamin staying on. Microsoft said the purchase would roughly double its addressable market in the healthcare-provider space to nearly $500 billion.

Extends Microsoft's industry-specific cloud strategy, adding Nuance's healthcare AI and deep EHR relationships to the Microsoft Cloud for Healthcare while bringing enterprise voice and biometric capabilities to Azure, Teams and Dynamics 365.

Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI. AI is technology's most important priority, and healthcare is its most urgent application.Satya Nadella, CEO, Microsoft

Advisory firms were not disclosed for this transaction.

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