Microsoft Corp. has agreed to acquire speech recognition firm Nuance Communications Inc. for $ 16 billion, which goes further in healthcare technology and a range of offerings that expand the range of software tools customers offer.
The cash for all cash pays $ 56 per Nuance share, a premium of 23% above Friday’s closing price. The companies set its value, including debt, at $ 19.7 billion.
The acquisition is Microsoft’s second largest under CEO Satya Nadella. The company spent approximately $ 26 billion on professional network LinkedIn Corp. in 2016.
Nuance, based in Burlington, Massachusetts, was a pioneer in speech recognition and artificial intelligence technology. The software was the basis of Apple Inc. siri voice assistant before launching its own version. Nuance was already investigating a possible sale back in 2014, when Samsung Electronics Co. and private equity firms were considered the most likely buyers.
Voice assistants took office when consumers adopted smart devices around their home. Amazon.com Inc. helped popularize its Alexa voice assistant through its Echo-smart speaker, and Google’s Alphabet Inc. equipment presented with its version of a virtual helper called Google Assistant.