NUAN - Microsoft likely 'highest and final bidder' for Nuance says Stifel

Over the weekend, Bloomberg sources said Microsoft (MSFT) was in talks to acquire Nuance Communications (NUAN) that would value the company at $56 per share.Stifel calls Microsoft a "logical buyer" of Nuance due to the multiyear partnership between the companies, which in recent years turned toward telehealth use cases through Nuance's Dragon Medical solution and Microsoft Teams.The firm thinks Microsoft was likely the "highest and final bidder" and "certainly the one strategic buyer in our view that could benefit from Nuance's exposure to both enterprise and healthcare."Stifel notes the existing integrations would make for an easy post-close transition, especially since Nuance already uses Microsoft Azure and Office 365 for its operations.Stifel maintains a Hold rating and $45 price target for Nuance.Nuance shares are up 23% pre-market to $56.04.The Microsoft-Nuance deal could be announced as early as this week, according to the Bloomberg report.

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Microsoft likely 'highest and final bidder' for Nuance, says Stifel