Microsoft Corp and Nuance Communications, Inc. announced they have entered into a definitive agreement under which Microsoft will acquire Nuance for an all-cash transaction valued at $19.7 billion, inclusive of Nuance’s net debt. Mark Benjamin will remain CEO of Nuance, reporting to Scott Guthrie, executive vice president of Cloud & AI at Microsoft. The transaction is intended to close this calendar year.
Nuance is a provider of conversational AI and cloud-based ambient clinical intelligence for healthcare providers. Nuance’s products include the Dragon Ambient eXperience, Dragon Medical One and PowerScribe One for radiology reporting, all clinical speech recognition SaaS offerings built on Microsoft Azure. Nuance’s solutions work with core healthcare systems, including longstanding relationships with Electronic Health Records (EHRs), to alleviate the burden of clinical documentation and help providers deliver better patient experiences.
Microsoft’s acquisition of Nuance builds upon an existing partnership announced in 2019. By augmenting the Microsoft Cloud for Healthcare with Nuance’s solutions Microsoft will be better able to empower healthcare providers through ambient clinical intelligence and other Microsoft cloud services. Beyond healthcare, Nuance provides AI expertise and customer engagement solutions across Interactive Voice Response (IVR), virtual assistants, and digital and biometric solutions to companies in all industries. This expertise will come together with Microsoft’s cloud, including Azure, Teams, and Dynamics 365, to deliver next-generation customer engagement and security solutions.