Microsoft buys AI firm Nuance Communications in $19.7-billion deal

Microsoft Corp said on Monday it would buy artificial intelligence and speech technology firm Nuance Communications Inc for about $16 billion, as it builds out its cloud strategy for healthcare and enterprise customers.

The deal comes after the companies partnered in 2019 to automate clinical administrative work such as documentation and as Microsoft tries to extend its leadership in vertical cloud solutions in major industries including healthcare.

“This acquisition brings our technology directly into the physician and patient loop, which is central to all healthcare delivery. The acquisition will also expand our leadership in cross-industry enterprise AI and biometric security,” Microsoft CEO Satya Nadella said on an investor call.