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Microsoft is acquiring Nuance Communications in an all-cash transaction valued at $19.7 billion, inclusive of Nuance’s net debt. The transaction is intended to close this year.
Nuance is a cloud and software provider of conversational AI and cloud-based ambient clinical intelligence for healthcare systems.
Nuance’s products include the Dragon Ambient eXperience, Dragon Medical One and PowerScribe One for radiology reporting, all leading clinical speech recognition SaaS offerings built on Microsoft Azure. Nuance’s solutions work with electronic health records on clinical documentation.
Mark Benjamin will remain CEO of Nuance, reporting to Scott Guthrie, executive vice president of Cloud & AI at Microsoft.
WHY THIS MATTERS
With this acquisition, Microsoft is doubling its total addressable market in the healthcare provider space to nearly $500 billion.
Nuance solutions are currently used by more than 55% of physicians and 75% of radiologists in the U.S., and used in 77%