Microsoft is buying AI speech tech firm Nuance for $19.7 billion, bolstering the Redmond, Washington-based tech giant’s prowess in voice recognition and giving it further leverage in the health care market, where Nuance sells many products. Microsoft will pay $56 per share for Nuance, a 23 percent premium over the company’s closing price last Friday.
Nuance is best 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.
The $19.7 billion acquisition of Nuance is Microsoft’s second-largest behind its purchase of LinkedIn in 2016 for $26 billion. It comes at a time when speech tech is improving rapidly, thanks to the deep learning boom in AI, and there are simultaneously more opportunities for its use.