Microsoft Corp. has agreed to acquire the voice recognition firm Nuance Communications Inc. for $ 16 billion, further boosting healthcare technology and adding to a number of offerings that have expanded the range of software tools it offers customers.
The total cash deal pays $ 56 per Nuance share, a 23% premium over Friday’s closing price. The companies placed their value, including debt, at $ 19.7 billion.
The acquisition is Microsoft’s second with CEO Satya Nadella. In 2016, the company spent about $ 26 billion for the professional network LinkedIn Corp.
Based in Burlington, Massachusetts, Nuance was a pioneer in voice recognition and artificial intelligence technology. Its software was the basis of Apple Inc.’s Siri voice assistant. before an own version was presented. Nuance had been exploring a possible sale since 2014, when Samsung Electronics Co. and private equity firms were considered the most likely buyers.
Voice assistants have caught on as consumers have adopted smart devices in their homes. Amazon.com Inc. helped popularize her Alexa voice assistant using her Echo, and Google Alphabet Inc. smart speaker. offered computers with their version of a virtual assistant, called Google Assistant.