Shares of technology firm that helped develop Apple's Siri software, Nuance Communications, rose more than 16% after Microsoft Corp. reportedly wanted to buy the company through a $ 19.7 billion deal.
The Nuance purchase is the second largest deal in Microsoft’s history after its acquisition of the LinkedIn site in 2016.
According to Microsoft in a statement issued, the firm will enhance Nuance's artificial intelligence software and expertise for healthcare companies.
Online medical services have been on the rise since the Covid-19 pandemic struck. The trend is expected to continue to increase after the pandemic.
The deal, which covers Nuance’s debt, is expected to be signed this year.
Massachusetts -based Nuance, was founded in 1992. The company has more than 1,600 employees worldwide and operates in 28 states.
The company recently focused on supplying software to the healthcare industry such as software that helps provide radiology reports automatically.
Nearly 80% of hospitals in the United States (US) have become Nuance customers. The firm’s acquisition will potentially expand Microsoft’s market in the healthcare industry.
Microsoft is expected to pay US $ 56 per share to bring Nuance under 'one roof'. The price is 23% higher than Nuance shares traded last Friday.
