Microsoft is in advanced talks to buy speech-recognition company Nuance Communications for about $16 billion, according to CNBC. A transaction could reportedly be signed as early as Sunday and announced as soon as Monday.
Microsoft first approached Nuance in December and is willing to pay about $56 per share for Nuance, representing a 23% premium over the stock’s Friday closing price of $45.58 per share.
At $16 billion, Nuance would be Microsoft’s second-largest acquisition after the $27 billion purchase of LinkedIn in 2016
Nuance is expected to expand Microsoft’s capabilities in voice software.
Founded in 1992, Nuance reported $7 million in net income on about $346 million in revenue in Q4, despite the revenue down 4% on an annualized basis.
The deal talks illustrate Microsoft’s recent efforts to expand through deals.
Last year, Microsoft considered buying U.S operations of video-sharing app TikTok and completed a $7.5 billion acquisition of video game maker Zenimax last month.
Microsoft stock is currently declining as Nuance gains. MSFT: NASDAQ is down 0.023%, NUAN: NASDAQ is up 22.18%
