Microsoft Buys Burlington-Based Nuance For $19.7 Billion

BURLINGTON, MA — Microsoft is set to make a huge play in the health care tech field by purchasing a local company that specializes in artificial intelligence and speech recognition software.

Mircosoft announced Monday morning it will buy Burlington-based Nuance Communications for $19.7 billion, including Nuance's debt. Microsoft agreed to pay $56 per share, a 23 percent premium from Nuance's closing price Friday.

Nuance is behind Siri's ability to understand and decipher what users tell it. Microsoft is banking on the company to help it expand in the health care AI field, where the two had been working by developing MicroSoft's cloud software for healthcare providers.

"Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI," said Microsoft CEO Satya Nadella said in a statement. "AI is technology's 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 for Healthcare and Nuance."

The New York Times reported this represents Microsoft's biggest deal since buying LinkedIn for $26.2 billion in 2015.