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