Microsoft announced this morning that it will acquire Nuance for $16 billion, a 23% premium over the company’s share price at Friday’s close. The total deal value, including debt, is nearly $20 billion.
Microsoft says the acquisition represents its latest step in advancing an industry-specific cloud strategy. It says the acquisition will double its healthcare total addressable market to $500 billion.
Microsoft CEO Satya Nadella said in the announcement, “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. 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 deal is expected to close by the end of the year.