Microsoft completes its $19.7B acquisition of Nuance, announced in April 2021, after the UK's CMA approved the deal earlier this week
GeekWireTodd Bishop
Context & Ripple Effects
Microsoft’s Nuance deal moved from an April 2021 cash agreement, pitched as a way to strengthen Microsoft’s healthcare offerings, through a CMA competition investigation to completion. Nuance also arrived with speech-recognition and natural-language capabilities broadened by its earlier Voicebox Technologies acquisition.
First-order effects
Microsoft takes ownership of Nuance and can bring its speech technology into Microsoft’s healthcare offering rather than relying on a separate supplier.
The CMA’s approval closes the UK competition review that had delayed the transaction after regulators said the deal might reduce competition.
Second-order effects
Nuance’s healthcare customers and partners now face Microsoft as the owner of the speech-technology vendor, concentrating commercial decisions around Microsoft’s healthcare strategy.
The completed deal gives Microsoft a clearer route to combine Nuance’s speech capabilities with its existing healthcare push, while the CMA’s review establishes that the transaction received formal competition scrutiny.
Third-order effects
The transaction points to large platform companies using acquisitions of specialized speech technology to deepen their positions in vertical software, with competition review becoming a gating step for those combinations.
The trend: Enterprise technology platforms are seeking specialized speech capabilities for healthcare, while UK merger scrutiny determines how quickly such acquisitions can close.
I'm thrilled to work with my new colleagues from Nuance! Did you know my voice was used for the French version of Dragon, around 1998? I remember having to read a text and they had a Perl program analyzing it, I was super impressed!! https://twitter.com/...
Microsoft has made $100 billion in acquisitions in the past quarter but hasn't shown 30 seconds worth of gameplay 😂😂 These investments are consistent with an exit strategy, not with a commitment to triple A gaming. The Xbox console will be no more in 2 years. Don't @ me https://t…
I've been able to successfully work since I became paralyzed 11 years ago because of @NuanceInc Dragon dictation software so it's an honor to have you as a part of the @Microsoft family https://twitter.com/...
.@NuanceInc is starting an exciting chapter as we join @Microsoft to positively transform how people connect, work, shop, bank and receive care! I couldn't be prouder of our amazing employees and the incredible future we have ahead of us! http://www.nuance.com/... #MSFTNuanceAI
Microsoft has completed its acquisition of AI speech tech company Nuance for $19.7 billion. It's Microsoft's second-biggest acquisition until Activision Blizzard closes, and will see the company take on Nuance's Dragon software https://t.co/oyGZfit39k https://t.co/TUw8oHMold