SEC Approves Microsoft’s $19.7 Million Acquisition of ‘Nuance Communications’!
In April, Microsoft, one of the United States-based technology and software giants, started the process of acquiring Nuance Communications for approximately $19.7 billion , and today Reuters news agency reported that the SEC (United States Securities and Exchange Commission) did not raise any objections to the deal process. . The approval “satisfies one of the closing conditions of the merger ,” Nuance said in a regulatory filing .
The confirmation doesn’t mean the deal is closed yet, as there are other entities involved, and Microsoft has previously said they are waiting for the deal to pass regulatory reviews in other jurisdictions and only plan to close by the end of 2021.
The Nuance deal is expected to strengthen Microsoft’s presence in the healthcare space, Microsoft CEO Satya Nadella said:
“Nuance provides the AI layer at the point of healthcare delivery and is a pioneer in the real-world application of enterprise AI. Artificial intelligence is technology’s top priority and healthcare is its most urgent application. “Together with our partner ecosystem, we will deliver advanced AI solutions into the hands of professionals everywhere to enable better decision-making and create more meaningful connections as we accelerate the growth of Microsoft Cloud for Healthcare and Nuance.”
When the deal closes, Mark Benjamin will remain CEO of Nuance, where he is active, and will report regularly to Scott Guthrie, vice president of Cloud and AI at Microsoft.
Why is Microsoft buying Nuance?
- Microsoft’s acquisition of Nuance was built on the successful partnership between the companies announced in 2019.
- By leveraging the Microsoft Cloud for Healthcare with solutions from Nuance and Nuance’s expertise and relationships with EHR system providers, Microsoft will be able to better empower healthcare providers through the power of ambient clinical intelligence and other Microsoft cloud services.
- Once completed, the acquisition will double Microsoft’s total addressable market (TAM) in healthcare providers, bringing the company’s TAM in healthcare to approximately $500 billion.
- Nuance and Microsoft will deepen their existing commitments to the highest standards of data privacy, security and compliance, as well as an expanded partner ecosystem.
- Beyond healthcare, Nuance will deliver AI expertise and customer engagement solutions across Interactive Voice Response (IVR), virtual assistants, and digital/biometric solutions to companies around the world, across all industries.
- This expertise will combine with the breadth and depth of Microsoft’s cloud systems, including Microsoft Azure, Microsoft Teams and Microsoft Dynamics 365, to deliver next-generation customer engagement and security solutions.