Microsoft Set for $19.7 Billion Aquisition of AI Healthcare Firm Nuance

Microsoft is set to purchase leading medical AI and cloud-intelligence provider Nuance in a deal valued at around $19.7 billion. The mammoth deal pushes Microsoft's medical and healthcare analysis credentials, building further on the two companies' existing relationship.

Microsoft Acquires Nuance For $19.7 Billion

Nuance is a leading conversational AI and "cloud-based ambient clinical intelligence" provider for healthcare organizations. The company delivers high-tech solutions to the healthcare sector.

For example, the Dragon Ambient eXperience is an AI-powered automatic clinical documentation tool that reduces the burden on healthcare providers, freeing up time for more productive tasks, while the Dragon Medical One and PowerScribe One deliver similar automation to radiology reporting and other healthcare systems.

Nuance healthcare solutions are currently used by more than 55 percent of US physicians and 75 percent of radiologists across the US. Nuance expects continued growth based upon previous results, delivering 37 percent year-on-year growth in 2020.

Nuance also provides its AI expertise to other companies, offering development support for Interactive Voice Response tools, virtual assistants, and digital and biometric solutions. Before its partnership with Microsoft, Nuance worked closely with Apple in the formation and development of Siri, its integrated virtual assistant.

In Microsoft's official press release regarding the acquisition, Microsoft CEO Satya Nadella made Nuance's future role clear.

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.

Microsoft Splashes the Cash for Healthcare Tech

The $19.7 billion deal is the second-largest in Microsoft's history, only behind the $26.2 billion acquisition of LinkedIn back in 2016. The prospective deal price adds a 23 percent premium to Nuance's share price but gives Microsoft another entry point into the world of healthcare technology, a sector experiencing sustained growth.

Although the deal is yet to be finalized, insider sources believe an announcement confirming the deal could come later this week. However, the deal could still fall through at this stage, pending confirmation from shareholders for both companies.

The reports of another major Microsoft acquisition come hot on the heels of the company's proposed deal for voice and video chatting app, Discord, along with the completed acquisition of Zenimax Media for $7.5 billion. There were also links between Microsoft and Pinterest, with the former certainly using its healthy balance book to strike while the iron is hot.

source https://www.makeuseof.com/microsoft-set-for-19-7-billion-aquisition-of-ai-healthcare-firm-nuance/