Weeks after Microsoft officially killed Cortana, the company has announced that it is purchasing Nuance. Nuance are the creators of speech recognition Dragon which forms the backbone of Siri.
The deal of $56 per share amounts to $19.7 billion which is a 23% premium of the closing price on Friday. Nuance is arguably the most advanced speech recognition company in the world.
“Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI,” said Satya Nadella, CEO, Microsoft. “AI is technology’s most important priority, and healthcare is its most urgent application. Together, with our partner ecosystem, we will put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections, as we accelerate growth of Microsoft Cloud for Healthcare and Nuance.”
The transaction has been unanimously approved by the Boards of Directors of both Nuance and Microsoft. The deal is intended to close by the end of this calendar year and is subject to approval by Nuance’s shareholders, the satisfaction of certain regulatory approvals, and other customary closing conditions.