Technology giant Microsoft acquires conversational artificial intelligence company Nuance in a recent deal. According to officials, the acquisition deal was worth a whopping $16 billion for $56 per share, about 23% above its closing price.
Earlier Microsoft shared its plans to acquire Nuance for $19 million, but the deal’s valuation changed after required regulatory approvals.
This new development is Microsoft’s one of the most significant acquisitions in recent years, following the acquisition of leading video game developer, publisher, and distributor Activision Blizzard for $68.7 billion.
Microsoft and Nuance will empower enterprises across industries to accelerate their business goals with our outcomes-based AI using Nuance’s security-focused, cloud-based solutions integrated with strong, vertically optimized artificial intelligence.
Executive Vice President of Cloud + AI Group at Microsoft, Scott Guthrie, said, “Completion of this significant and strategic acquisition brings together Nuance’s best-in-class conversational AI and ambient intelligence with Microsoft’s secure and trusted industry cloud offerings.”
He further added that the acquisition would enable healthcare providers to provide more inexpensive, effective, and accessible treatment while also helping businesses of all sizes develop more personalized and engaging customer experiences.
Customers will now be able to enjoy the benefits of better consumer, patient, clinician, employee experiences, and improved productivity and financial performance.
United States-based conversational AI company Nuance was founded by Ronald Croen in 1992. The firm specializes in providing solutions that understand, analyze, and respond to people – amplifying human intelligence to increase productivity and security.
CEO of Nuance, Mark Benjamin, said that Nuance’s deep vertical expertise and proven business outcomes in healthcare, financial services, retail, telecommunications, and other industries, combined with Microsoft’s global cloud ecosystems, will enable Nuance to accelerate its innovation and deploy the solutions more quickly, seamlessly, and at scale.
“As Microsoft and Nuance come together as one organization, we are excited about the opportunities ahead for our technology, employees, customers, and partners,” added Benjamin.