US technology giant Microsoft announced the acquisition of Nuance Communication, an artificial intelligence and voice technology company, for approximately US$16 billion, due to the demand for telemedicine services during the pandemic.
The two companies formed a partnership in 2019 to automate administrative work in the medical field. The acquisition announced on Monday marks Microsoft’s ambition to expand into a field that is undergoing accelerated digital transformation due to the coronavirus pandemic. .
Reuters pointed out that healthcare providers are investing heavily in technology to improve productivity and digital healthcare.
Microsoft CEO Satya Nadella (Satya Nadella) said: “This acquisition will directly integrate our technology into the doctor-patient communication vital to all medical services, and will expand our corporate and biological Identify the leadership role in security AI applications.”
Nuance is known for its pioneering voice technology and participated in Apple’s Siri virtual assistant project. After changing the business strategy and selling the less profitable parts of the business, the company focused on healthcare and business AI.
The company said it does business with 77% of US hospitals, providing clinical speech recognition, medical transcription and medical imaging services. It operates in 28 countries/regions and will achieve revenue of US$1.5 billion by the end of fiscal year 2020.
Two-thirds of Nuance’s revenue comes from operations in the healthcare sector.
After the transaction is completed, Nuance will become Microsoft’s second acquisition transaction, second only to LinkedIn, which spent $26.2 billion in 2016. Including Nuance’s net debt, the total value of cash transactions is estimated at $19.7 billion.