There is an agreement for Microsoft to acquire Nuance Communications. The giant of Bill Gates has put on the pot as much as 16 billion dollars.
Artificial intelligence is the future of medicine and this is well known by the large companies listed on Wall Street. Recently, Microsoft’s decision to put 16 billion dollars on the plate to buy Nuance Communications, an American company that specializes in artificial intelligence with specific reference to speech recognition, has caused a stir.
16 billion dollars means 56 dollars per share which, considering the closing price of the Nuance stock on Friday, corresponds to a premium of 23 percent.
These numbers indicate only one thing: Microsoft intends to play it safe and properly flatter Nuance shareholders. After all, the stakes are very high (and Bill Gates knows it) as Nuance is showing a strong penetration in the healthcare sector where it has been present for some time with software that allows the digitization of conversations of medical visits, thus facilitating the clinical documentation.
In short, Nuance operates in a sector that looks to the future (the medicine of tomorrow will be increasingly digital) and Microsoft intends to expand in this sector where there are large areas of application of artificial intelligence.
Microsoft Buys Nuance: It Is the Second-Richest Acquisition for Gates
Shopping on Nuance represents the second-richest acquisition ever for the giant of Bill Gates. The record of the largest acquisition of all time belongs to the operation that was conducted on LinkedIN but also the deal with Nuance is destined to make history.
By buying the artificial intelligence company, Microsoft has once again shown that it is very active on the M&A front. In September, the group bought ZeniMax, the parent company of video game developers such as id Software and Bethesda Softworks. Going even further back in time, the acquisitions of Affirmed Networks and Metaswitch Networks occurred in the spring. These are the deals that went through. To these completed operations, those that are still in progress and those that are only the subject of rumors without some real news (examples, in this sense, are Pinterest and even Warner Bros).
In short, Microsoft is one of the most active listed companies in terms of new acquisitions and this is an element that could positively affect the performance of the American stock.
Interviewed by CNBC, Microsoft chief executive Satya Nadella said, referring to the acquisition of Nuance, that Microsoft’s job is to provide ” technology so that doctors and providers can keep all data safe “.