Microsoft is buying speech-recognition pioneer Nuance Communications in an all-cash deal valued at $US19.6 billion ($25.8 billion), gaining artificial-intelligence technology aimed at helping doctors predict patients’ needs and upgrading hospitals’ digital record-keeping.

The software giant is offering to purchase Nuance at $US56 a share, a 23 per cent premium to Friday’s close, according to a statement on Monday (Tuesday AEST), which confirmed an earlier Bloomberg report. The deal marks Microsoft’s largest acquisition since LinkedIn Corp.

Bloomberg