In a move that will double Microsoft's Total Addressable Market (TAM) as a healthcare provider to nearly $500 Billion, Microsoft Corp is set to acquire Nuance Communications across a $19.7 billion deal. Microsoft will acquire Nuance for $56.00 per share, a transaction that is expected to close this calendar year. Mark Benjamin will remain the CEO of Nuance, reporting to Scott Guthrie, who is the Executive Vice President of AI and Cloud at Microsoft.
Nuance provides conversational AI and cloud-based medical and clinical intelligence for healthcare providers. Its solutions are used by over 75% of radiologists in the US and in 77% of hospitals in the USA. Nuance's Healthcare Cloud revenue has also experienced a 37% year-on-year growth. In India, Nuance has offices in Pune and Bengaluru. With 8,500 employees globally.
Nuance also provides customer engagement solutions, virtual assistants, biometric and digital solutions to companies around the world across all industries. This expertise will come together with Microsoft's cloud, including Teams, Dynamics 365, and Azure, to produce effective customer engagement and security solutions. The combination of Nuance and Microsoft offers a unique opportunity to deliver meaningful value to shareholders who have supported the company in this journey.