Microsoft has acquired Nuance Communications for approximately $ 20 billion.
Nuance Communications develops conversational artificial intelligence, with a focus on healthcare. Among other things, it sells software for recognizing and transcribing speech during doctor visits.
The valuation of just $ 20 billion, or $ 56.00 per share in cash, offers a premium of 23 percent against nuance’s closing price on Friday at $ 45.58.
Nuance reported a 4 percent annual revenue drop to $ 346 million and a net profit of $ 7 million over the past quarter. The profit was 44 million dollars a year earlier.
The acquisition is the second largest for Microsoft ever, after the acquisition of LinkedIn in 2016 for $ 27 billion. Microsoft expects to be able to complete the acquisition by this calendar year.
Microsoft’s share seems to be opening slightly lower on Monday, while Nuance is expected to increase 23 percent.