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By Acquiring Nuance, Microsoft Speeds Up Its Healthcare Cloud Strategy
Microsoft has acquired Nuance for almost $20 billion. It provides Microsoft with the ability to deliver new AI and cloud capabilities to the healthcare industry and other industries.
Microsoft has announced it will acquire Nuance for $56 per share in an all-cash transaction. The total amount is just shy of $20 billion for the acquisition, which offers new abilities to Microsoft to better serve the healthcare industry.
Nuance is known as a “trusted” cloud and AI software company and has years of experience serving the healthcare industry. The current CEO of Nuance, Mark Benjamin, will remain as the CEO and this acquisition is expected to be finalized by the end of 2021.
Responding to New Opportunities Faster
Microsoft is looking for new ways to accelerate its cloud offerings in the healthcare industry. They introduced Microsoft Cloud for Healthcare in 2020 and this new acquisition may help to strengthen their offering in the industry. Microsoft expects to be able to respond to new opportunities easier with this acquisition when it comes to industry-specific cloud strategies, specifically for the healthcare industry.
When it comes to cloud-based ambient clinical intelligence and conversational AI for healthcare provides, Nuance has positioned itself as a “leading” provider and a pioneer. They created popular products, such as the Powerscribe One, Dragon Ambient eXperience, and Dragon Medical One. These products have helped those in the healthcare industry provide better reporting and better speech recognition.
With the SaaS offerings already built on Microsoft Azure, the companies seem to fit well together. Many of the products created by Nuance work with core healthcare systems due to their longstanding relationships.
By acquiring Nuance, Microsoft will double the total addressable market or TAM within the healthcare space. The company will have a TAM in healthcare close to $500 billion after the acquisition. The two companies would also offer a higher standard when it comes to data security, compliance, and privacy.
The AI layer from Nuance offers a real-world enterprise AI and one of the top priorities for Microsoft and the healthcare industry. This acquisition may allow Microsoft to place advanced AI solutions into the hands of healthcare professionals across the world. It may also help to accelerate the growth of the Microsoft Cloud for Healthcare product as they add Nuance to the offering.
While the acquisition will likely have the most impact on how Microsoft offers products to the healthcare industry, it can go further than just healthcare. Nuance offers AI solutions that may help other industries and companies across the globe. Microsoft is expected to merge the technology into other offerings to help customers engaging with all types of solutions and products they currently offer.
Both Microsoft and the Nuance Boards of Directors provided unanimous approval of the transaction. The deal is expected to close by the end of the year. It must still be approved by the Nuance shareholders and must go through regulatory approval, as well.
Once the deal closes, Nuance’s financials will likely be reported as a segment of the Microsoft Intelligent Cloud.
Source: https://hostingjournalist.com/by-acquiring-nuance-microsoft-speeds-up-its-healthcare-cloud-strategy/
