On Monday, Microsoft announced that it would buy Nuance Communications for a total of $16 billion. This declaration is a major win for the tech giant as it is the second-largest acquisition ever since it bought LinkedIn for a whopping $26 billion in 2016.
This deal is a clear sign that Microsoft is looking for stellar growth opportunities through acquisitions. Before it bought Nuance Communications, it was in the process of buying Tik Tok for a grand sum of $30 billion. However, the deal didn’t go through and Tik Tok remains in control of its original owners.
Despite failing to crack the deal with the popular U.S app, Microsoft was still able to buy the gaming platform, Zenimax for $7.6 billion. At present, the tech giant strives to acquire Discord– a popular chat app for $10 billion.
Nuance’s shares had increased by 23% in the trading, which is almost equal to the premium that Microsoft aims to pay, given the price closing on Friday. Right after that increase, trading was immediately stopped and is expected to start again in the morning.
This acquirement will not only reap benefits for Microsoft but will also help in bringing Nuance Communications to a more advanced level. Subsequently, it has the chance to stand in line with Microsoft’s business that caters to other businesses and administrations. It is important to highlight that Nuance is specialized in obtaining its share of profit by selling its equipment for recording and copying speech in medical visits and voicemails.
As stated by the tech giant itself, Nuance’s technological gear is going to be a good addition: It would expand Microsoft’s cloud equipment for health care. Moreover, it has further declared that Nuance Communication’s Chief Executive Officer Mark Benjamin would still be an integral part of the company, highlighting that he would directly report to Scott Guthrie, who looks after Microsoft’s cloud business.
Once again, Microsoft has accomplished another great achievement that comes in the form of Nuance Communications. It has been a strong target for several top-tier companies like Apple and yet, Microsoft was able to beat the odds and acquire Nuance.