Why Nuance Communications Stock Surged Today

Shares of Nuance Communications (NASDAQ: NUAN) climbed 16% on Monday after Microsoft (NASDAQ: MSFT) announced an agreement to purchase the artificial intelligence-powered speech-recognition company. 

Microsoft will pay $56 per share for Nuance, or roughly 23% above its closing price on Friday. The all-cash deal values the speech technology leader at $19.7 billion when factoring in its debt.

Nuance's tech will bolster Microsoft's healthcare cloud offerings. Its software uses conversational AI to improve the accuracy of its medical transcription services. Its tools are currently used in 77% of U.S. hospitals.

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Source Fool.com