Microsoft Corp. has agreed to acquire speech recognition company Nuance Communications Inc. for $ 16 billion, further deepening health technology and expanding a series of deals that have expanded the range of software tools it offers to customers.
The all-cash deal pays $ 56 per Nuance share, a 23% premium over Friday’s closing price. The companies estimate the value, including debt, at $ 19.7 billion.
The acquisition is Microsoft’s second largest under Chief Executive Satya Nadella. The company spent approximately $ 26 billion on the professional network LinkedIn Corp. in 2016.
Based in Burlington, Massachusetts, Nuance pioneered speech recognition and artificial intelligence technology. The software formed the basis of Apple Inc.’s Siri voice assistant. before an internal version was introduced. Nuance was investigating a possible sale back in 2014, when Samsung Electronics Co. and private equity firms were seen as the most likely buyers.
Voice assistants have gained the upper hand as consumers have embraced smart devices in their homes. Amazon.com Inc. helped popularize its Alexa voice assistant through its smart speaker Echo, and Alphabet Inc.’s Google. offered equipment with its version of a virtual helper called Google Assistant.