The price being discussed could value Nuance at about $56 a share, the source said, adding that an agreement could be announced as soon as Monday.
Bloomberg News, which first reported the deal between Nuance and Microsoft, said bloom.bg/2Qgfm7e talks are ongoing and the discussions could still fall apart.
Burlington, Massachusetts-based Nuance whose voice recognition technology helped launch Apple Inc’s assistant Siri, makes software for sectors ranging from healthcare to the automotive industries.
The deal with Nuance would be Microsoft’s second-biggest deal, after its $26.2 billion acquisition of LinkedIn in 2016.
Microsoft and Nuance did not immediately respond to Reuters’ request for comment.
One picture is worth a thousand words: dozens of Hamas rockets in front of dozens of Iron Dome missiles in the night sky