Microsoft MSFT recently announced the acquisition of Nuance Communications NUAN for $19.7 billion (including Nuance’s net debt) in an all-cash deal. Microsoft will pay $56 per share to Nuance shareholders, which represents 23% premium to the stock’s closing price of $45.58 on Apr 9, 2021.
What does Microsoft’s acquisition of nuance stock mean for investors?
· Microsoft will pay $56 a share for Nuance in a transaction it expects to close this calendar year. The purchase price is a 23% premium to Nuance's closing price on Friday. Bloomberg reported Sunday...
How has Nuance stock performed since the spin-off of cerence?
· REDMOND, Wash. — March 4, 2022 — Microsoft Corp (Nasdaq: MSFT) on Friday announced the completion of its acquisition of Nuance Communications Inc. (Nasdaq: NUAN), a leader in conversational AI and ambient intelligence across industries including healthcare, financial services, retail and telecommunications. Driven by a shared vision to build outcomes …
What happened to nuance?
Apple (ticker: APPL) spent over $400 billion on buybacks in the last 10 years, while Microsoft (MSFT) spent nearly $130 billion. Since 2017, annual spending on buybacks by companies in the S&P 500 index totaled $650 billion each year, on average, according to an Aug. 6 report by J.P. Morgan quant analyst Dubravko Lakos-Bujas.
How does nuance technologies make money?
· Microsoft MSFT recently announced the acquisition of Nuance Communications NUAN for $19.7 billion (including Nuance’s net debt) in an all-cash deal. Microsoft will pay $56 per share to Nuance...
What happens when Microsoft buys Nuance?
Microsoft says its Nuance acquisition will result in new solutions that combine voice, artificial intelligence and cloud technologies for industries including healthcare, retail, telecommunications and financial services.
Should I sell Nuance stock now?
2 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Nuance Communications in the last year. There are currently 1 hold rating and 1 buy rating for the stock. The consensus among Wall Street equities research analysts is that investors should "buy" Nuance Communications stock.
Will Microsoft acquire Nuance?
— March 4, 2022 — Microsoft Corp (Nasdaq: MSFT) on Friday announced the completion of its acquisition of Nuance Communications Inc. (Nasdaq: NUAN), a leader in conversational AI and ambient intelligence across industries including healthcare, financial services, retail and telecommunications.
What company owns Nuance?
Microsoft CorporationNuance Communications / Parent organizationMicrosoft Corporation is an American multinational technology corporation which produces computer software, consumer electronics, personal computers, and related services. Wikipedia
Is Nuance Communications a good stock to buy?
NUAN delivered a 24.74% return since the beginning of the year, while its 12-month revenues are impressively up by 115.35%. The stock closed at $55.00 per share on July 16, 2021.
What is the stock symbol for nuance?
NUAN(NUAN)
Why did MSFT buy Nuance?
Microsoft is acquiring Nuance to extend its reach into healthcare and other industries. The purchase price of $19.6 billion includes the assumption of debt. The largest acquisition in Microsoft's history remains its $26.2 billion deal for LinkedIn.
Why does Microsoft want Nuance?
“Microsoft will benefit from the acquisition of Nuance, at least in terms of voice recognition and transcription technology, as the company has a strong background in this field.”
Is Nuance a Fortune 500 company?
Figures are for fiscal year ended Sept. 30, 2017....Company Info.CEOMark D. BenjaminWebsitehttp://www.nuance.comYears on Fortune 500 List-Employees11,6004 more rows
Did Nuance become Kofax?
Irvine, CA, February 1, 2019 – Kofax®, a leading supplier of Intelligent Automation software to automate and digitally transform end-to-end business processes, today announced the closing of its acquisition of Nuance Document Imaging (NDI), a division of Nuance Communications, Inc. (NASDAQ: NUAN).
Is Nuance publicly traded?
As a result of the Merger, Nuance will cease to be a publicly traded company. The acquisition has been approved by Nuance's shareholders, and we expect it to close by the end of the first calendar quarter of 2022, subject to the satisfaction of certain regulatory approvals and other customary closing conditions.
How much did Microsoft pay for Nuance?
Microsoft has closed on its approximately $16 billion acquisition of speech recognition company Nuance. The deal, which was announced last year, helps Microsoft Corp. get more entrenched into hospitals and the health care industry through Nuance's widely used medical dictation and transcription tools.
What percentage of doctors use Nuance?
Plus, more than 55% of physicians and 75% of radiologists in the U.S. use Nuance products. Doctors use its software to transcribe their spoken notes into patient records. Burlington, Mass.-based Nuance is at the forefront of digitizing the health-care industry.
What was the buy point for Microsoft stock on April 5?
On April 5, Microsoft stock broke out of a flat base at a buy point of 246.23, according to IBD MarketSmith charts. On Friday, Microsoft stock notched a record high of 255.99. It remained in the 5% chase zone of its breakout on Monday.
How much cash does Microsoft have in 2020?
Oppenheimer analyst Timothy Horan said he is pleased that Microsoft is putting its massive cash reserves to work. It had about $132 billion in cash and short-term investments at the end of 2020. He rates Microsoft stock as outperform.
Is Microsoft buying Discord?
Redmond, Wash.-based Microsoft is ramping up its activity in mergers and acquisitions, Ives said. The company also is interested in buying Discord, a video game chat community , for more than $10 billion, according to news reports.
Is Nuance a cloud?
Last year, Microsoft launched its Microsoft Cloud for Healthcare offering. "Nuance provides the AI layer at the health care point of delivery and is a pioneer in the real-world application of enterprise AI," Microsoft Chief Executive Satya Nadella said in a news release Monday.
When will Nuance be acquired?
The acquisition has been approved by Boards of Directors of the companies and is expected to be concluded by the end of 2021. The deal is subject to Nuance’s shareholders’ approval as well as other regulatory and customary conditions.
Who is the CEO of Nuance?
Mark Benjamin will continue to be CEO for Nuance and will now report to executive vice president of Microsoft’s Cloud & AI segment, Scott Guthrie.
How much did Microsoft pay for Nuance?
Microsoft will pay $56 per share to Nuance shareholders, which represents 23% premium to the stock’s closing price of $45.58 on Apr 9, 2021.
How does Nuance benefit Microsoft?
How Nuance Buyout Benefits Microsoft? The acquisition of Nuance Communications is expected to increase Microsoft’s total addressable market or TAM in healthcare vertical to $500 billion, noted the software giant.
What is the value of LinkedIn acquisition?
Nuance buyout marks one of the largest acquisitions for Microsoft. LinkedIn acquisition, at a price tag of $26.2 billion, remains one of the major acquisitions till date for the tech giant. Some other notable recent acquisitions include ZeniMax Media (2021) and GitHub (2018) for $7.5 billion each.
Is Microsoft a partner of Nuance?
Microsoft and Nuance already have partnership in place to innovate conversational AI and ambient intelligence technologies to augment physician-patient interaction. Both the companies are concentrating on enhancing healthcare delivery by transforming Nuance’s ambient clinical intelligence (ACI) technology.
When did Microsoft acquire Nuance?
Microsoft’s acquisition of Nuance builds upon the successful existing partnership between the companies that was announced in October 2019, where the companies had entered into a strategic partnership to help transform healthcare delivery for a more sustainable future.
How much has Nuance outperformed the S&P 500?
Since the spin-off of Cerence, Nuance has outperformed S&P 500 by 215% and has been a multi-bagger. Nuance’s outperformance can be attributed to its shift in focus on Healthcare and Enterprise AAXN +4.3% business since the spin-off and its consistent financial performance over the past two years.
What is Nuance Communications?
Nuance Communications, Inc. provides conversational artificial intelligence (AI). The company delivers solutions that understands, analyzes, and responds to people. The company provides healthcare AI solutions and services, omnichannel customer engagement, and Dragon consumer and Enterprise. The company works with various organizations across healthcare, financial services, telecommunications, government, and retail. The company operates through three segments: Healthcare, Enterprise, and Other. Its Healthcare segment is a provider in clinical speech and clinical language understanding solutions. The Enterprise segment is primarily engaged in using speech, natural language understanding, and artificial intelligence to provide automated customer solutions and services for voice, mobile, Web, and messaging channels. For FY20, the company reported revenues of $1.5 billion.
When was Nuance Communications last report published?
We had dropped coverage on Nuance Communications, Inc. on March 31, 2021 and our last report was published on August 12, 2020. Microsoft has accelerated its efforts to provide industry-specific cloud offerings to support customers and partners as they respond to disruption and new opportunities.
What company did Microsoft buy from Zenimax?
The Nuance acquisition comes about a month after Microsoft closed its $7.6 billion deal for ZeniMax, the parent company of video game publisher Bethesda. Since the spin-off of Cerence, Nuance has outperformed S&P 500 by 215% and has been a multi-bagger.
How much did Microsoft buy Nuance?
Microsoft announced it will buy Nuance Communications in a $16 billion deal, or about $19 billion including debt. Microsoft will buy Nuance for $56 per share , about a 23% premium over Nuance’s closing price Friday. Nuance’s technology will be used in Microsoft’s health-care cloud products.
How much is Nuance worth?
The deal is worth about $16 billion and about $19 billion including debt.
When was Nuance founded?
Nuance was founded in 1992, and had 7,100 employees as of September. Microsoft said Nuance CEO Mark Benjamin will remain at the company and report to Scott Guthrie,who is in charge of Microsoft’s cloud and artificial intelligence businesses.
What company did Microsoft buy in 2016?
The Nuance acquisition represents Microsoft’s largest acquisition since it bought LinkedIn for more than $26 billion in 2016. Last month, Microsoft completed its $7.6 billion acquisition of gaming company Zenimax. Shares of Nuance ended the trading day up 15.95% Monday. Microsoft shares were up slightly. Nuance would be aligned with the part of ...
What happens to stockholders in a merged company?
Stockholders in a merged company are no longer minority owners of just one company but now have voting power over the combined entity. This typically means that their impact on corporate decisions, such as board members and CEO selection, will increase which may not be favored by all shareholders if there is disagreement or confusion about who should lead the new corporation.
How does merger affect consumers?
Merging can also affect consumers in some ways! They might benefit by allowing the possible connection between the two companies to provide a better service, but they might also be affected by the number of choices and prices that are available.
How many shares of a company will be equal to 600?
When stocks from two merging companies come together, stockholders of each company must decide whether to keep shares of both or pick just one. If you’re holding 300 shares of Company A before acquisition with 200 shares of Company B at $100 per share then your holdings will equal 600 total after the merger is finalized ($300 worth of Company A and 400 worth on Company B).
How does a merger benefit shareholders?
A merger can be beneficial for both shareholders and consumers depending on who’s at play here! The merging companies might benefit by being able to share resources more efficaciously or they may have trouble competing with other bigger players in the industry so this is seen as a way for them to stay afloat when they otherwise wouldn’t be able to do so easily.
Why are stockholders happy with cash?
“Generally, stockholders will be happy with a combination of cash and stocks because both provide benefits. A company may receive more money from an acquisition in the form of shares rather than only receiving cash.”#N#– Companies can use their new funds for expansion projects or pay off loans#N#– Stock is generally more stable than cash over time so investors are better suited to long-term investments when they get a mixture.”#N#– “Finally, by combining these elements into one transaction,” companies achieve greater value on public markets because shareholders have less risk exposure to fluctuations in market prices.”
What happens when a company is acquired and has more shares?
When a merger or acquisition takes place, the equalization effect will typically happen when the company being acquired has more shares outstanding. The acquiring company’s stockholders are usually given a fixed number of new shares to maintain their percentage ownership stake (exact ratio varies by deal).
What is the difference between merger and acquisition?
In a merger, two companies become one and combine their assets while in an acquisition, the acquiring company purchases all of the shares from another company to control it outright.
How does declining stock market affect M&A?
Also, a declining stock market negatively affects the value of stocks in M&A deals. In a rip-roaring, take-no-prisoners bear market, the stock's values in both the acquiring company and the target company could fall even in what is obviously a solid deal.
How does M&A affect stock prices?
There are many details involved in M&A transactions, but one factor is a constant: Mergers and acquisitions affect stock prices. The effect is positive in enough cases that M&As draw widespread investor interest. In the stock investing universe, M&As holds the very real possibility of making the proverbial quick killing: a stock price rising in double-digit percentages in a matter of days or weeks.
What are the risks of M&A?
The Risks Are Large 1 When you buy stock in either company after an M&A is announced, you pay a premium price. And if the M&A falls through, the value of the stock sinks on the announcement the deal has been abandoned. 2 Still another risk is the possibility that the terms of the M&A change before completion. That even includes the acquiring company lowering the price they're willing to pay for the acquired company.
What is M&A in business?
M&A, which is an abbreviation for mergers and acquisitions, is a common business occurrence. In some cases, it enables a business to expand without the need to grow organically.
What is the objective of merger and acquisition?
Whether the transaction is a merger or acquisition, the objective is to build synergy between the two organizations. This often happens when two companies engaged in the same industry launch an M&A to expand market reach. Or perhaps two companies in separate but related industries come together to form a more seamless business operation.
Why do people do M&A?
The most obvious benefit to M&A investing is the potential to reap big gains quickly. It's also possible to make an even bigger profit if you hold your stock until the deal is consummated.
How many shares of company B will be converted to 100?
If you're holding 250 shares of stock in Company B, they'll be converted into 100 shares of Company A when the merger is complete.
