take place Microsoft is in advanced talks to buy Nuance for artificial intelligence and speech technology for about $ 16 billion.
The price discussed may value Nuance at around $ 56 a share, although terms may change.
That would give Nuance a share value of about $ 16 billion, according to data compiled by Bloomberg.
An agreement may be announced as soon as this week, as talks are still ongoing with the possibility of stopping at any time.
Nuance shares are up 3.4 percent this year, giving the company, which laid the foundation for the technology used in Apple’s Siri voice assistant, a market value of nearly $ 13 billion.
Microsoft and Nuance have collaborated since 2019 on technologies to do things like: allow doctors to capture voice conversations from patient visits and enter data into electronic medical records.
The deal could help Microsoft accelerate the digitization of the healthcare industry, which has lagged behind other sectors such as retail and banking.
The biggest benefit of this deal is in the near term in the telehealth industry, where Nuance’s transcription product is currently in use with Microsoft Teams.
Nuance, whose products include the Dragon speech recognition software, had a net income of $ 91 million on revenues of $ 1.48 billion for the fiscal year ended September 30, after losing $ 217 million the previous year.
Microsoft, which has a market value of $ 1.93 trillion, is still active in the bargain business.
Bloomberg reported last month that the software giant was in talks to acquire the Discord platform for more than $ 10 billion.
It also bought video game maker Zenimax Media for $ 7.5 billion in cash in a deal that closed this year.
The Nuance deal ranks second on Microsoft’s acquisition list, after LinkedIn’s $ 24 billion deal in 2016.
Microsoft entered the field of artificial intelligence decades ago through research projects and an early focus from co-founder Bill Gates on finding ways to make it easier for people to speak to computers using simple English.
In recent years, the company has hired thousands of employees to work in artificial intelligence and has released tools that customers can use to build applications that understand and translate speech, recognize images and discover differences.
The company sees AI as the main driver of future sales of cloud services.
Microsoft faces fierce competition in the field with competitors investing heavily in this field, such as: Google and Amazon.