Microsoft is moving towards the acquisition of Nuance communication and is awaiting European Antitrust agency approval!
Microsoft has just announced a $16 billion bid to acquire Nuance Communication — an AI and speech technology company. However, this deal is subject to unconditional EU Antitrust approval. This is Microsoft’s second-biggest deal of all time after LinkedIn’s acquisition that cost $26.2 billion.
Why did Microsoft make a move?
The deal was made to improve Microsoft’s presence in the cloud service sector, specifically pertaining to healthcare. They have already received approval from Australia and the U.S. This can drastically enhance Microsoft’s standing in the industry, as Nuance is the organization that helped create Apple’s Siri and also serves 77% of U.S hospitals.
What is the next step?
Currently, Microsoft is waiting for the European Commission’s approval to finalize this deal. The commission was said to comment about the proceedings by the 21st of December. However, there is still no word as yet.
After discussion with the CMA antitrust agency, Microsoft’s case is said to be filed in January. That being said, CMA has not openly stated that the matter will be further discussed, so there is no clear indication of what’s next.
Last month the European Commission did ask customers about the possible negative aspects of this deal and how it could impact the market. By far, this investigation is said to be the most extensive review by the antitrust authority.
What the future holds
AI is growing exponentially, and organizations are doing everything they can to incorporate artificial intelligence into their operations. The acquisition of Nuance by Microsoft can be a giant leap forward, but only time will tell whether they get the required clearance to move the deal forward.