Nuance is a provider of conversational AI and cloud-based ambient clinical intelligence solutions for healthcare providers. The company’s products include the Dragon Ambient eXperience, Dragon Medical One and PowerScribe One for radiology reporting, as well as all clinical speech recognition SaaS offerings built on Microsoft Azure.
“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,” said Satya Nadella, CEO, Microsoft.
Microsoft’s acquisition of Nuance builds upon an existing partnership between the companies that was announced in 2019, augmenting the Microsoft Cloud for Healthcare with Nuance’s solutions and expertise. The acquisition will also double Microsoft’s total addressable market (TAM) in the healthcare provider space, bringing the company’s estimated TAM in healthcare to nearly $500 billion.
“Over the past three years, Nuance has streamlined its portfolio to focus on the healthcare and enterprise AI segments, where there has been accelerated demand for advanced conversational AI and ambient solutions,” said Mark Benjamin, CEO, Nuance.
“To seize this opportunity, we need the right platform to bring focus and global scale to our customers and partners to enable more personal, affordable and effective connections to people and care. The path forward is clearly with Microsoft – who brings intelligent cloud-based services at scale and who shares our passion for the ways technology can make a difference. At the same time, this combination offers a critical opportunity to deliver meaningful and certain value to our shareholders who have driven and supported us on this journey.”
Upon closing, Microsoft expects Nuance’s financials to be reported as part of Microsoft’s Intelligent Cloud segment. The deal is intended to close by the end of this calendar year and is subject to approval by Nuance’s shareholders, the satisfaction of certain regulatory approvals, and other customary closing conditions. However, the transaction has been unanimously approved by the Boards of Directors of both Nuance and Microsoft.