Microsoft buys Siri speech recognition partner Nuance in $19.7B deal

Microsoft has acquired speech recognition systems company Nuance in an all-cash deal valued at $19.7 billion, giving it control over the firm that helped Apple process Siri queries.

Following initial reports over the weekend that talks were underway, Microsoft revealed on Monday that it had in fact reached a deal with Nuance. The deal, which will be for $56 per share, represents a 23% premium on Nuance's closing price from Friday.While the deal was speculated to give Nuance a valuation in the region of $16 billion, the actual all-cash transaction will be valued at $19.7 billion according to Microsoft, taking into account Nuance's net debt. Existing Nuance CEO Mark Benjamin will stay in his role, and will report to Microsoft's Scott Guthrie, executive vice president of Cloud & AI.

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