M&A · Tech · Services-Prepackaged Software
Microsoft Corp to acquire Nuance Communications, Inc.
Announced Apr 12, 2021 · Closed Mar 4, 2022
Deal value$19.70BEV $17.21B
Premium23.0%To unaffected price
EV / Adj. EBITDA—12.2x EV / Revenue
ConsiderationAll cash$56.00 per share
Transaction
- Acquirer
- Microsoft Corp (MSFT)
- Target
- Nuance Communications, Inc.
- Buyer type
- Strategic
- Offer price per share
- $56.00
- Enterprise value
- $17.21B
- Status
- Closed Mar 4, 2022
Deal protections
- Break fee (target pays)
- $515M · 2.6%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Goldman Sachs
- To the target
- Evercore
- Evercore fee
- $1.4M
Sector context · Tech
- Comparable deals
- 28 in the prior 24 months
- Premium
- 23.0% vs. 33.0% sector median
- EV / Adj. EBITDA
- Sector median 17.3x
- Break fee
- 2.6% vs. 3.0% sector median
Timeline
- AnnouncedApr 12, 2021
- Proxy filedMay 5, 2021
- Definitive proxyMay 17, 2021
- Shareholder voteJun 15, 2021
- ClosedMar 4, 2022
Valuation · fairness opinions
Trading comparables$44.59$52.76
Trading comparables$36.83$49.23
Trading comparables$31.70$42.39
Trading comparables$32.33$44.59
Trading comparables$24.43$36.83
Offer $56.00
Implied value per Nuance Communications, Inc. share by analysis, from Evercore · DCF discount rate 8%–9%.