NUAN Stock: Over 20% Increase Pre-Market Explanation

By Amit Chowdhry ● April 12, 2021
  • The stock price of Nuance Communications Inc. (NASDAQ: NUAN) increased by over 20% pre-market. This is why it happened.

The stock price of Nuance Communications Inc. (NASDAQ: NUAN) increased by over 20% pre-market. Investors appear to be responding to rumors that Microsoft is in advanced talks to buy Nuance for $16 billion ($56 per share). The $56 per share price is a 23% upside to Nuance’s closing price of $45.58 per share price on Friday.

The deal could have been signed as early as yesterday and could be announced today. If the rumors are true, then this would be Microsoft’s second-largest acquisition following the $26 billion acquisition of LinkedIn in 2016. And last month, Microsoft closed the $7.5 billion acquisition of video game company Zenimax.

What does Nuance do? Nuance sells tools for transcribing speech during doctor visits, customer service phone calls, and voicemails. In Q4, Nuance had reported $346 million in revenue and $7 million in net income.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.