Microsoft is reportedly in talks to purchase Nuance Communications Inc., an artificial intelligence and speech technology company. News of the discussions between Microsoft and Nuance comes from a report from Bloomberg, which spoke with people familiar with the situation. The deal could potentially be worth $16 billion, which would make it one of Microsoft’s largest acquisitions ever.
Nuance worked on the tech that powers the voice aspect of Apple’s Siri assistant and makes the well-known Dragon speech-recognition software. Microsoft has also worked with Nuance since 2019. Microsoft’s collaboration with Nuance includes utilizing AI to help doctors capture and record medical information from patients.
According to Bloomberg’s sources, the deal between Microsoft and Nuance could value Nuance at $56 per share. This would value Nuance as a whole at $16 billion. The deal would fall short of Microsoft’s purchase of LinkedIn for $26.2 billion but would still be one of Microsoft’s largest acquisitions ever.
The deal could be announced as soon as this week, according to Bloomberg. A Microsoft representative declined to comment to Bloomberg, and Nuance did not respond to Bloomberg’s request for comment.
Microsoft has a Tech Center next to Nuance’s headquarters in Massachusetts, so Microsoft is close to Nuance in both technological goals and physical proximity.
A CNBC report states that Microsoft first approached Nuance in December and that the acquisition could be announced as soon as today.