Microsoft negotiates the purchase of Nuance for more than 13,400 million

The company, specializing in voice technology and artificial intelligence, could become the second largest acquisition of the software giant

Microsoft is holding advanced talks to buy the voice technology and artificial intelligence company Nuance Communications, according to Bloomberg this Sunday, quoting several people familiar with the matter. These sources, who asked not to be identified because the information is private, indicate that the agreement could be announced this next week. The news has also been confirmed by Reuters, who points out that the operation could be announced this Monday.

The price being discussed could value Nuance at about $ 56 a share, though the terms could still change, one of the people noted. That would value the company at about 16,000 million dollars (about 13,444 million euros), according to data compiled by the aforementioned agency. The price would be a 23% premium over the closing on Friday of the shares of Nuance, a company whose speech recognition technology helped launch Apple’s Siri voice assistant.

Although the talks between the two companies would be well advanced, they could still fall apart, as Bloomberg sources have specified. So far, neither Microsoft nor Nuance have confirmed the news.

Shares of Burlington, Massachusetts-based Nuance have risen 3.4% this year, giving the company a market value of nearly $ 13 billion, but are still behind the jump of 9, 9% given by the S&P 500 index. Microsoft is up 15%.

The software giant, with a market value of more than 1.93 trillion dollars, has maintained a very active purchasing policy in recent times. Last March it was made public that the company run by Satya Nadella was negotiating the purchase of Discord, a community mostly known for video game chat, for 10 billion dollars (8,407 million euros). The news was advanced by VentureBeat and confirmed by Bloomberg and The New York Times .

Microsoft has made important acquisitions in recent years focused on digital communities, such as the purchases of LinkedIn , GitHub or the studio responsible for the development of the Minecraft video game , in addition to the purchase last September of the video game manufacturer ZeniMax Media, Bethesda’s parent company. , for $ 7.5 billion in cash.

If the Redmond company closes the purchase of Nuance, this would be Microsoft’s second-largest acquisition, behind only LinkedIn, for which it spent $ 26.2 billion in 2016.

Microsoft and Nuance, a pioneer in conversational artificial intelligence and  the development of voice authentication and facial biometrics applications to prevent fraud , have collaborated since 2019 on voice recognition and processing solutions optimized for the medical sector, in order to to support decision-making and solve healthcare challenges. Nuance has its Dragon Medical platform, used by more than 500,000 physicians worldwide, and conversational artificial intelligence technology for clinical documentation.

The company makes technology solutions for sectors ranging from healthcare to the automotive industry. As stated on its website, 85% of Fortune 100 companies work with its solutions.

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