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Nuance Communications, Inc.
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== Acquisition by Microsoft == On March 4<sup>th</sup> 2022, Microsoft Corp completed the acquisition of Nuance Communications Inc. in all cash transaction valued at $18.8<ref>https://www.microsoft.com/investor/reports/ar22/index.html</ref> billion, inclusive of Nuance’s net debt. This is the third largest acquisition in Microsoft history after Activision-Blizzard and LinkedIn. [[File:MS + NUANCE.jpg|thumb|311x311px]] === Acquisition Rationale === Microsoft's acquisition of Nuance builds upon their previous successful partnership, initially announced in 2019. By integrating Nuance's solutions into the Microsoft Cloud for Healthcare and leveraging Nuance's expertise and relationships with EHR systems providers, Microsoft aims to enhance healthcare providers' capabilities through ambient clinical intelligence and other cloud services. Nuance's expertise in AI and customer engagement also extends beyond healthcare, which will benefit Microsoft in providing advanced solutions to other industries as well. The acquisition of Nuance by Microsoft is expected to expand Microsoft's total addressable market (TAM) in the healthcare provider domain, effectively increasing it to almost $500 billion.<ref>https://news.microsoft.com/2021/04/12/microsoft-accelerates-industry-cloud-strategy-for-healthcare-with-the-acquisition-of-nuance/</ref>The acquisition aligns with Microsoft's strategy to focus on specialised cloud services for different sectors. According to Microsoft CEO, Satya Nadella, ''"Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI.” “AI is technology’s most important priority, and healthcare is its most urgent application. Together, with our partner ecosystem, we will put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections, as we accelerate growth of Microsoft Cloud for Healthcare and Nuance."''<ref name=":0">https://news.microsoft.com/2021/04/12/microsoft-accelerates-industry-cloud-strategy-for-healthcare-with-the-acquisition-of-nuance/</ref> === How is this acquisition beneficial for both Microsoft and Nuance? === On the whole, acquiring Nuance is extremely beneficial for both parties. In the long term, Microsoft will acquire Nuance's technology, staff and skills, clients and IP(intellectual property). Stu Patterson, ex-CEO, SpeechWorks, told the Boston Globe that Nuance: ''“… has more intellectual property around speech than anybody on earth.” ''<ref>https://vux.world/why-is-microsoft-acquiring-nuance-really-the-bigger-picture/</ref> The biggest benefits for Microsoft are however expansion in the healthcare market and strengthening Industry-Specific Cloud Strategy. For Nuance, on the other hand, this acquisition gives it access to a much larger market due to Microsoft's vast customer base and global reach as well as more financial strength and stability. This can fuel further innovation, research, and development of cutting-edge products and services. Also, by integrating Nuance's conversational AI and healthcare solutions into Microsoft's product portfolio, there are opportunities to create synergies and cross-selling between Nuance's offerings and Microsoft's existing suite of products. These synergies could include complementary product offerings, streamlined operations and cross-selling opportunities among others.
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