Microsoft to buy AI and speech tech company Nuance for €16bn

Microsoft said on Monday it would buy artificial intelligence and speech technology firm Nuance Communications for about $16 billion (€13.43 billion) in cash, as it builds out its cloud strategy for healthcare. The deal comes as both companies, which partnered in 2019 to automate clinical administrative work such as documentation, gain from a boom in telehealth services with medical consultations shifting online due to the Covid-19 pandemic. "Nuance provides the AI layer at the healthcare point of delivery," Microsoft chief executive Satya Nadella said in a statement, adding "AI is technology's most important priority, and healthcare is its most urgent application." Microsoft's offer of $56 per share represents a premium of 22.86 per cent to Nuance's last close. Shares of Nuance rose nearly 23 per cent in pre-market trading.