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With the ongoing acquisitions, Microsoft is nearing a deal to purchase voice recognition pioneer Nuance Communications that would value the artificial intelligence firm at $16 billion, as per the people briefed about the matter.
Sources say the deal would be the second-largest acquisition ever by the Microsoft firm. Before making this deal, the company had been exploring several takeover opportunities over a year, which involved an approach for social media groups and firms such as TikTok, Pinterest, and Discord.
The concerned persons who know about the matter said a deal could be declared this week as the two sides are close to settling the transaction and more terms. They clearly stated that there was still a slight chance that the deal could fall apart, but we all hoped for the best.
Nuance is a Burlington-based company, who was one of the early developers of speech recognition Artificial Intelligence. Its technology and services are used to power the voice responses in Apple’s virtual assistant “Siri”.
Not only this, the firm’s powerful and smart technology is used in a wide range of industries and sectors to make them more seamless and high-end. After years of small acquisitions, and exploring the marketplace, it has been now focusing to strip back its business and dive into a handful of markets to rekindle growth and expansion.
Microsoft, a tech giant is a baton in the natural language processing (NLP) AI that underpins such systems. By acquiring Nuance, it will Microsoft gain more customer base, and sell a large number of prospects belonging to healthcare, financial services, telecoms, and more. In 2020, Nuance made $29 million in net income, after several years of consecutive losses, and its revenue has fallen more than a quester since peaking above $2 billion.
However, Nuance only made $29m in net income last year, after several years of losses, and its revenue has fallen more than a quarter since peaking above $2bn in 2018.
Microsoft has been on a purchasing spree for the past few years, and constantly expires the markets for the right opportunities, and mergers to acquire more industries and widen the customer base at a large scale. Lastly, in 2016, it acquired professional networking site LinkedIn for about $26 billion, and after two years in 2018, it bought code repository group GitHub for $7.5 billion and more.
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