Microsoft to purchase Nuance, the AI giant that helped create Apple's Siri, for $19.7 billion

Microsoft logo (Image credit: Daniel Rubino / Windows Central)

What you need to know

Microsoft officially announced plans to purchase artificial intelligence and speech technology Nuance Communications.
The deal is worth $19.7 billion, which makes it one of Microsoft's largest purchases to date.
Nuance played a major role in the making of Apple's Siri.

Microsoft officially announced an agreement to purchase Nuance Communications Inc., an artificial intelligence and speech technology company. Before the official announcement, reports about the discussions between Microsoft and Nuance were reported by Bloomberg. The deal is worth $19.7 billion, making it one of Microsoft's largest acquisitions ever.

Nuance worked on the tech that powers the voice aspect of Apple's Siri assistant and makes the well-known Dragon speech-recognition software. Microsoft has also worked with Nuance since 2019. Microsoft's collaboration with Nuance includes utilizing AI to help doctors capture and record medical information from patients.

Microsoft CEO Satya Nadella says of Nuance,

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.

The deal values Nuance at $56 per share, which implies a 23% premium to the closing price of Nuance from Friday, April 9. The total value of the deal is higher than the suspected value of $16 billion before official news about the agreement was announced. The exact value of the deal appears to be a combination of Nuance's value and its debts, which likely explains the discrepenancy between the predicted $16 billion figure and the final $19.7 billion figure.

The deal falls short of Microsoft's purchase of LinkedIn for $26.2 billion but is still be one of Microsoft's largest acquisitions ever.

Microsoft has a Tech Center next to Nuance's headquarters in Massachusetts, so Microsoft is close to Nuance in both technological goals and physical proximity.

Microsoft literally has a building here (Tech Center) in MA next to Nuance, so not too surprising that the companies have become so close that an acquistion would happen. https://t.co/4yCHNKwdBzMicrosoft literally has a building here (Tech Center) in MA next to Nuance, so not too surprising that the companies have become so close that an acquistion would happen. https://t.co/4yCHNKwdBz— Daniel Rubino (@Daniel_Rubino) April 11, 2021 April 11, 2021

A CNBC report states that Microsoft first approached Nuance in December.

Sean Endicott is a news writer and apps editor for Windows Central with 11+ years of experience. A Nottingham Trent journalism graduate, Sean has covered the industry’s arc from the Lumia era to the launch of Windows 11 and generative AI. Having started at Thrifter, he uses his expertise in price tracking to help readers find genuine hardware value.

Beyond tech news, Sean is a UK sports media pioneer. In 2017, he became one of the first to stream via smartphone and is an expert in AP Capture systems. A tech-forward coach, he was named 2024 BAFA Youth Coach of the Year. He is focused on using technology—from AI to Clipchamp—to gain a practical edge.