Microsoft receives Green Flag Form EU In Nuance Deal

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(RTTNews) – American tech giant Microsoft Inc. (MSFT) is set to receive another green signal for its multi-billion dollar acquisition of artificial intelligence company Nuance. Reuters reported on Friday that the European Union will also allow the deal unhindered. The decision will be announced on December 21st and neither party has commented on the issue. Microsoft announced the deal in April and has already received antitrust approval in the US and Australia. EU approval will bring the company one step closer to completing its second largest acquisition, having bought LinkedIn for $ 26.2 billion in 2016. Nuance is one of the most successful manufacturers of AI-based speech recognition technologies in the country. It is famous for its Dragon speech recognition system. The company also worked with Apple Inc. (AAPL) to set up Siri, Apple’s voice assistant. Currently, the company operates in 77% of the country’s hospitals, and the acquisition will not only give Microsoft a lot of ground in its healthcare cloud business, but it will also be able to leverage the company’s AI technology to advance its research. The Nuance deal was originally referred to as a “killer acquisition,” in which larger companies kill smaller competitors by buying them. The approval of three antitrust authorities will make Microsoft optimistic about the situation. However, Microsoft has yet to wait for the UK ruling on the matter, which will be filed in January. The leading tech companies have recently started acquiring smaller but niche companies. This not only reduces competition, but also helps the company to incorporate the research results of the acquired company into its own use. The breakdown of the payment has yet to be clarified, but $ 3 billion of the fee is reported to be used to pay off the debt.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.


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