{"id":1166,"date":"2021-04-19T11:55:51","date_gmt":"2021-04-19T10:55:51","guid":{"rendered":"https:\/\/telecomkh.info\/?p=1166"},"modified":"2021-10-19T10:59:10","modified_gmt":"2021-10-19T09:59:10","slug":"microsoft-accelerates-industry-cloud-strategy-for-healthcare-with-the-acquisition-of-nuance","status":"publish","type":"post","link":"https:\/\/telecomkh.info\/?p=1166","title":{"rendered":"Microsoft accelerates industry cloud strategy for healthcare with the acquisition of Nuance"},"content":{"rendered":"

Acquisition will combine solutions and expertise to deliver new cloud and AI capabilities across healthcare and other industries<\/strong><\/p>\n

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Microsoft Corp and Nuance Communications, Inc. announced they have entered into a definitive agreement under which Microsoft will acquire Nuance for $56.00 per share, implying a 23% premium to the closing price of Nuance on Friday, April 9, in an all-cash transaction valued at $19.7 billion, inclusive of Nuance\u2019s net debt. Nuance is a trusted cloud and AI software leader representing decades of accumulated healthcare and enterprise AI experience. Mark Benjamin will remain CEO of Nuance, reporting to Scott Guthrie, executive vice president of Cloud & AI at Microsoft. The transaction is intended to close this calendar year.
\nMicrosoft has accelerated its efforts to provide industry-specific cloud offerings to support customers and partners as they respond to disruption and new opportunities. These efforts include the Microsoft Cloud for Healthcare, introduced in 2020, which aims to address the comprehensive needs of the rapidly transforming and growing healthcare industry. Today\u2019s acquisition announcement represents the latest step in Microsoft\u2019s industry-specific cloud strategy.
\nNuance is a pioneer and a leading provider of conversational AI and cloud-based ambient clinical intelligence for healthcare providers. Nuance\u2019s products include the Dragon Ambient eXperience, Dragon Medical One and PowerScribe One for radiology reporting, all leading clinical speech recognition SaaS offerings built on Microsoft Azure. Nuance\u2019s solutions work seamlessly with core healthcare systems, including longstanding relationships with Electronic Health Records (EHRs), to alleviate the burden of clinical documentation and empower providers to deliver better patient experiences. Nuance solutions are currently used by more than 55% of physicians and 75% of radiologists in the U.S., and used in 77% of U.S. hospitals. Nuance\u2019s Healthcare Cloud revenue experienced 37% year-over-year growth in Nuance\u2019s fiscal year 2020 (ended September 2020).
\nMicrosoft\u2019s acquisition of Nuance builds upon the successful existing partnership between the companies that was announced in 2019. By augmenting the Microsoft Cloud for Healthcare with Nuance\u2019s solutions, as well as the benefit of Nuance\u2019s expertise and relationships with EHR systems providers, Microsoft will be better able to empower healthcare providers through the power of ambient clinical intelligence and other Microsoft cloud services. The acquisition will double Microsoft\u2019s total addressable market (TAM) in the healthcare provider space, bringing the company\u2019s TAM in healthcare to nearly $500 billion. Nuance and Microsoft will deepen their existing commitments to the extended partner ecosystem, as well as the highest standards of data privacy, security and compliance.
\n\u201cNuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI,\u201d said Satya Nadella, CEO, Microsoft. \u201cAI is technology\u2019s 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 in Healthcare and Nuance.\u201d
\nBeyond healthcare, Nuance provides AI expertise and customer engagement solutions across Interactive Voice Response (IVR), virtual assistants, and digital and biometric solutions to companies around the world across all industries. This expertise will come together with the breadth and depth of Microsoft\u2019s cloud, including Azure, Teams, and Dynamics 365, to deliver next-generation customer engagement and security solutions.
\n\u201cOver the past three years, Nuance has streamlined its portfolio to focus on the healthcare and enterprise AI segments, where there has been accelerated demand for advanced conversational AI and ambient solutions,\u201d said Mark Benjamin, CEO, Nuance. \u201cTo seize this opportunity, we need the right platform to bring focus and global scale to our customers and partners to enable more personal, affordable and effective connections to people and care. The path forward is clearly with Microsoft \u2014 who brings intelligent cloud-based services at scale and who shares our passion for the ways technology can make a difference. At the same time, this combination offers a critical opportunity to deliver meaningful and certain value to our shareholders who have driven and supported us on this journey.\u201d
\nThe transaction has been unanimously approved by the Boards of Directors of both Nuance and Microsoft. The deal is intended to close by the end of this calendar year and is subject to approval by Nuance\u2019s shareholders, the satisfaction of certain regulatory approvals, and other customary closing conditions.
\nUpon closing, Microsoft expects Nuance\u2019s financials to be reported as part of Microsoft\u2019s Intelligent Cloud segment. Microsoft expects the acquisition to be minimally dilutive (less than 1 percent) in fiscal year 2022 and to be accretive in fiscal year 2023 to non-GAAP earnings per share, based on the expected close timeframe. Non-GAAP excludes expected impact of purchase accounting adjustments, as well as integration and transaction-related expenses. The acquisition will not impact the completion of its existing share repurchase authorization.<\/p>\n

Above, Satya Nadella, CEO, Microsoft \/ Image credited to Microsoft<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Acquisition will combine solutions and expertise to deliver new cloud and AI capabilities across healthcare and other industries   Microsoft Corp and Nuance Communications, Inc. announced they have entered into a definitive agreement under which Microsoft will acquire Nuance for $56.00 per share, implying a 23% premium to the closing price of Nuance on Friday, … <\/p>\n

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