Microsoft buys Nuance Communications for $19 billion

Microsoft buys Nuance Communications for $19 billion

The week started with an important acquisition in the tech sector

Microsoft announced that it would purchase Nuance Communications, a speech recognition company, for $56 per share, pushing the deal at roughly $16 billion ($19 billion, including debt).

The Burlington-based company Nuance Communications is mainly known for its Dragon software which “uses deep learning to transcribe speech and improves its accuracy over time by adapting to a user’s voice.” It is used for various services and apps, including Apple’s Siri.

Microsoft’s Nuance acquisition is its second largest after the $26 billion deal with LinkedIn in 2016. Moreover, it comes when speech tech is rapidly evolving due to the progress made in AI.

According to experts, for Microsoft, which gets 2/3 of its revenue from software sales and cloud computing, it will be a natural move to improve and implement the new technology to its existing software like Teams or Azure cloud business.

This is not Microsoft’ first purchase this year. Last month it bought ZeniMax – a games company – for $7.5 billion.

Following the news, Nuance stock price went up 15.95%, while Microsoft closed 0.02% higher.

Sources: theverge.com, finance.yahoo.com

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.