Microsoft Makes A $20 BILLION Bet on Nuance

Microsoft plans to buy a tech firm known for helping to develop Apple’s Siri speech recognition software in a deal valued at $19.7 billion.

The purchase of Nuance Communications is the second largest in Microsoft’s history, after its acquisition of networking site LinkedIn in 2016. Did you forget that Microsoft owns LinkedIn?

So-called “telehealth” and remote doctor visits have boomed during lockdown and this growth is forecast to continue after the pandemic.

Microsoft said the acquisition would bolster its software and artificial intelligence expertise for use by healthcare companies. “Nuance provides the AI layer at the healthcare point of service,” Microsoft chief executive Satya Nadella said in a statement. “AI is technology’s most important priority, and healthcare is its most urgent application.”

The deal, which includes Nuance debt, is expected to be completed this year.

What is Nuance?
Nuance is a Burlington Massachusetts-based technology company that employs more than 1,600 people globally and is active in 28 countries. You might not recognize the Nuance name but they are the makers of Dragon Speech Recognition software – one of the better speech recognition applications available for both PC’s and mobile users.
https://www.nuance.com/index.html

Known as a speech recognition pioneer, Nuance has more recently focused on providing software to the healthcare industry, such as software that helps to automate reports and makes it easier for doctors to create patient notes by dictation.

Why are Microsoft and Nuance joining forces?
The acquisition builds on a partnership the two companies formed in 2019 to automate clinical administrative work such as documentation. Nearly 90% of US hospitals and 10,000 healthcare organizations are already Nuance customers.

Microsoft says that purchasing Nuance will dramatically expand its potential market in the health care industry. Nuance executives said joining forces with Microsoft would help deepen its cloud-based offerings and allow it to tap into Microsoft’s existing global customer base.

Microsoft is on the offensive concerning mergers and acquisitions lately, and they are in a very good position to quickly capitalize on its purchase, calling Nuance another feather in its cap.

I can’t imagine a downside to this acquisition – better speech technology and artificial intelligence will make all of our lives and the world we live in better.