Microsoft is in advanced talks to buy AI and voice technology company Nuance Communications for about $16 billion, and the negotiated price could value Nuance at $56 per share, 23% higher than its closing share price on Friday, and the agreement will be announced by next Monday.
And Bloomberg News, which was the first to report the deal between Microsoft and Nuance, reported that talks are still ongoing, but negotiations may fail to reach an agreement.
Since last May, Microsoft has increased its focus on the healthcare sector and has since unveiled a suite of industry-specific cloud software and has hired executives with backgrounds in medical and machine learning research and AI tools in clinical trials.
Nuance makes software for industries ranging from healthcare to the automotive industry, as it designed the voice-recognition technology that helped launch Siri on Apple devices. Nuance purchase will be Microsoft’s second largest, after its acquisition of LinkedIn in 2016 for $26.2 billion.
According to the stock market, Nuance shares have risen 3.4% this year, giving it a market value of $13 billion, following the effects of a 9.9% rise in the S&P 500, while Microsoft shares have seen a 15% gain so far.