Microsoft acquires Nuance for 19.7Billion Dollars:

  • Microsoft acquires “Nuance”, an artificial intelligence and cloud computing company for a deal worth 19.7 Billion Dollars making it its second biggest deal after the purchase of LinkedIn in 2016. The entire amount roughly worth 1,47,900 crore in Indian Rupees. 
  • The objective of this deal is to make Microsoft more systematise with new cloud and AI capabilities so as to make a more prominent path towards healthcare sector and other industries, confirmed CEO of Microsoft in a Bloomberg post on Monday. 
  • The deal would double its potential healthcare market to nearly $500 billion (roughly Rs. 37,53,880 crores).
  • The other uses of this conversational AI tool are to specialise medical terms, automatic preparation of notes, better patient-physician interaction in person or during online telemedicine appointments such as in a pandemic situation. 
  • Nuance is also a speech-recognition company based in Burlington, Massachusetts that helped Apple to create a digital assistant called Siri. 
  • The share of Nuance after the acquire from the tech giant will be around $56.00 per share that is a value of 23% premium value over the stocks. 
  • Moreover, after the purchase, Mark Benjamin, the CEO of Nuance will keep continuing its role at Nuance. 
  • In 2016, Microsoft purchased LinkedIn with a value worth 26.2 billion dollars which is believed to be the largest acquisition ever made by Microsoft in its entire career. It keeps topping the list till date even after the acquisition of Nuance in 2021. 
  • Microsoft CEO Satya Nadella shared in the Bloomberg blogpost how advantageous it is in acquiring Nuance. He explained that the company is a pioneer in the real-world application of enterprise AI. The company shall start providing an AI layer at the healthcare point of delivery to its new parent company, The Microsoft. 
  • The CEO continues its explanation explaining the importance of AI technology even in the healthcare sector. Since Microsoft Cloud has planned all way to also put its presence in the healthcare industries and hospitality, with the help of Nuance, the company can make more better advanced solutions so that the sector gets the benefit of better decision and more creative connections.  
  • Microsoft has always invested heavily in the domain of artificial intelligence. In 2018, it introduced a start-up called Xoxco for creating AI-based conversational chatbots. Similarly, in 2020, the company unveiled an enormous supercomputer for AI work that contained 285,000 processor cores, with an expectance to close the deal by the end of 2021. 
  • Nuance’s technology is currently used by more than 55 percent of physicians and 75 percent of radiologists in the United States. 
  • Last year, the Redmond, Washington-based giant integrated Nuance Communication’s Dragon Ambient eXperience programme into its Teams communications software, which enables remote transcription of medical conversations.
  • Microsoft also sees potential to expand the technology beyond health care. Like other technology heavyweights, Microsoft has been a big beneficiary of the economic dislocations during COVID-19.
  • Microsoft is currently on the hunt for more acquisitions and this Nuance deal could be the first step in an increased appetite for deals in 2021 with Discord, a video game chat community. 
  • It comes just a few months after the takeover of ZeniMax, the parent company of video game publisher Bethesda Softworks, for $7.5 billion (roughly Rs. 56,300 crores) in September. 
  • The other bigger deals include that of Pinterest, a crafting social media platform with a possibility of $51 billion (roughly Rs. 3,82,840 crores) transaction, and the popular Discord discussion platform for about $10 billion (roughly Rs. 75,070 crores).
  • Shares of Nuance surged 16 percent to $52.85 (roughly Rs. 4,000), while Microsoft was essentially flat at $255.91 (roughly Rs. 19,200).
  • If predicted from the current constant deals and discussions made by Microsoft, it is also planning to go beyond the healthcare sector such as financial sectors using those similar cut-throat AI transcriptions. Predictions were made by the executive vice president of Microsoft Cloud and AI Group. 

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