Microsoft acquired Nuance Communications in 2021 for approximately $19.7 billion to expand healthcare technology.
Nuance Communications developed speech-recognition, conversational-artificial-intelligence, and clinical-documentation software. Its technology was used in healthcare settings to help clinicians capture and organize medical information, including through the Dragon Medical platform.
Microsoft announced the acquisition in April 2021 and completed it in March 2022. The transaction was valued at approximately $19.7 billion, including assumed debt. Microsoft said Nuance would strengthen its cloud and artificial-intelligence capabilities, particularly in healthcare and enterprise applications.
Nuance had already worked with Microsoft before the purchase. Its speech technologies also had a long history in voice interfaces and dictation products. The acquisition was separate from Microsoft’s purchase of LinkedIn in 2016 and from its acquisition of speech-and-language assets through other partnerships. Nuance continued operating as part of Microsoft, with its healthcare expertise supporting Microsoft Cloud for Healthcare and related clinical tools.