By Dhirendra Tripathi
Investing.com – Microsoft (NASDAQ:MSFT) shares were a tad negative on reports the software giant is close to acquiring healthcare-focused AI firm Nuance (NASDAQ:NUAN) for about $16 billion, in what would make it the company's second largest acquisition after LinkedIn’s $26 billion.
Bloomberg said the deal could be announced today. According to the report, Microsoft could value Nuance at $56 per share, a premium of 23% to Nuance’s closing price of $45.58 on Friday.
Nuance, the name behind the technology used in Apple’s Siri, has a market cap of almost $13 billion.
Microsoft has been working with Nuance for two years on AI software that helps clinicians capture patient discussions and integrate them into electronic health records. Using the speech technology company’s products, this data is then integrated into Microsoft Teams chat app for telehealth appointments.
For the quarter ended December, Nuance reported revenue of $345.8 million, down 4.3% from $361.5 million in the same period last year. Net income fell more than a sixth to $7 million from $43.6 million.