SoundHound AI Acquires Interactions For $60M Cash Plus Milestone Payments

Deal Further Positions SoundHound AI at the Forefront of Breakthrough Innovation and the Rapid Expansion of AI Agents

SoundHound AI, Inc. (NASDAQ:SOUN), a global leader in voice and conversational AI, today announced the acquisition of Interactions, a pioneer in AI for customer service and workflow orchestration. This strategic deal is expected to strengthen and extend SoundHound's growing leadership in Agentic AI and accelerate its market penetration in customer service across enterprise businesses.

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This strategic deal is expected to strengthen and extend SoundHound's growing leadership in Agentic AI

The combination also introduces major new powerhouse brands to the SoundHound customer portfolio, including global consumer icons, large technology device brands, insurers, automakers, and other preeminent Fortune 100 companies across industries.

One of the early pioneers in AI for customer service, Interactions provides businesses with AI-powered voice assistants to enhance customer engagement while improving productivity. The potential synergies with SoundHound's existing solutions – including complementary capabilities – are expected to grow the company's enterprise business. This includes generating significant new revenue through product, geographic, and channel expansion, as well as cross-sell and upsell opportunities.

With two decades of innovation and IP, customer accumulation, enterprise integration, and large amounts of production data, Interactions will help SoundHound AI to reshape the future of customer service.

SoundHound will provide a full-suite of options for omnichannel Agentic AI and offer a path to full AI automation for customers that have historically relied exclusively on human-in-the-loop or agent-only solutions, significantly expanding SoundHound's addressable market. The company's customer experience platform is also designed to integrate seamlessly into any contact center, providing innovation and scale for any business.

Key Facts:

• Introduces a diverse new client base across a range of verticals, building out SoundHound's existing customer portfolio across retail, insurance, and others.
• Brings multiple new global brands, including sports retailers, technology device manufacturers, insurers, automakers, and more.
• Strengthens SoundHound's existing intellectual property, bringing the combined total to nearly 400 patents.
• Complementary technology enables the company to provide a full-suite of options for omnichannel Agentic AI and a path to automation for customers that have relied on human-in-the-loop or agent-only solutions.
• Creates opportunities for revenue generation, including cross-selling and up-selling.

Since going public in 2022, SoundHound has been able to augment its growth and portfolio diversity through targeted and strategic acquisitions. By successfully combining these various organizations, the company has extended and reinforced its leadership in Agentic AI, where they were one of the first to bring a fully agentic platform to market.

 

The acquisition consideration consists of approximately $60 million in cash payable at close, with the potential for additional payments earned contingent on the achievement of certain revenue milestones. The transaction is expected to be immediately accretive to SoundHound's operating profitability. At closing, the combined company holds over $270 million of cash on hand with no outstanding debt.