SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice artificial intelligence, today announced the acquisition of Amelia, a leading enterprise AI software company. The business combination positions SoundHound AI as the foremost provider of voice and conversational generative AI, with reach across multiple industries – including retail, financial services, healthcare, automotive, smart devices, restaurants, and more.

The companies will bring together decades of experience in conversational AI – and highly complementary product portfolios – to offer best-in-class, scalable customer service support to a vast spectrum of businesses. These include some of the very largest multinational enterprise brands, top 15 global banks, and Fortune 500 organizations, with the combined company spanning nearly 200 marquee customers.

For SoundHound AI, the deal marks a significant and strategic expansion of its existing customer service pillar, adding breadth and depth to a division that has seen substantial growth amid the accelerated adoption of voice and conversational generative AI solutions. The acquisition positions the company at the center of this burgeoning space, as enterprise spending on generative AI is forecast to gather more momentum, reaching between $175 billion and $250 billion by 2027 (McKinsey, June 2024). Customer service is identified as a key area for disruption.

Combination Synergies:

• Leading Position In Conversational AI: Combination of AI expertise, proprietary technology, complementary product offerings, and extensive cross-industry deployment gives the unified company a distinct competitive advantage in the burgeoning conversational AI space
• Vertical Expansion Into Large Addressable Markets: Introduces new, sizable vertical industries – massively increasing the combined company’s addressable markets – with reach into industries such as healthcare, insurance, financial services, and retail, with the potential for more
• Diversification of Customer Base: Hundreds of large enterprise brands, with no single customer accounting for more than 10% of total combined revenue
• Revenue and Cost Advantages: Unlocks cross-selling and up-selling revenue opportunities, while SoundHound's proprietary tech and cloud migration is expected to create cost savings
• New Monetization Opportunities: Expansive voice commerce opportunities, from ordering food, to buying tickets, and making appointments from millions of devices powered by SoundHound AI
• Integrations and Capabilities: Deep integration with multiple large enterprise customers and channel partners as well as a global presence that includes a strong R&D center in Bangalore, India

Acquisition Financials:

• Purchase price of $80M in cash and equity, with partial payment and assumption of Amelia’s debt, as well as future earnout potential aligned to revenue milestone achievements
• Combined revenue in 2025 is expected to exceed $150M, with Amelia contributing over $45M in recurring AI software revenue, plus other non-software revenues such as professional services and agent-related fees
• Transaction is expected to be accretive to SoundHound earnings in the second half of 2025, with meaningful revenue and cost synergies driving growth and profitability expansion in subsequent years
• At closing, the combined company holds approximately $160M of cash and $39M of debt

As well as accelerating and scaling SoundHound AI’s customer service offering, this move also allows the company’s vision of a voice commerce ecosystem to become more ambitious in its scope. With its recent acquisition of food ordering marketplace Allset, SoundHound AI began to expedite plans to bring voice transactions – like food ordering – to its range of voice-enabled products, including vehicles, TVs, and devices. Now Amelia brings new industries to this monetization pillar, with the potential to add consumer transactions across healthcare, financial services, and retail to the vision.

“SoundHound AI has emerged as a leader in bringing voice-enabled conversational AI to products and services. Now with more businesses choosing voice AI technology for customer service – and more consumers expecting a seamless, AI-powered service – this acquisition positions SoundHound as a strong force with range, scale, and world class technology,” said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. “Amelia is an innovative company that shares our passion for AI-fueled conversations. We are looking forward to leveraging our shared capabilities to offer the best AI customer support solutions available anywhere.”

“We’re excited to bring Amelia’s experience and relationships to SoundHound AI, bolstering the company’s growing AI customer service business to form a new category leader in the space,” said Lanham Napier, President of Amelia and Co-Founder of BuildGroup. “With impressive penetration into a range of vertical industries, proprietary technology, and decades of combined AI experience, SoundHound is well positioned to take advantage of burgeoning interest in conversational AI customer support.”

Alongside partner relationships built over 25 years, Amelia brings additional AI expertise to SoundHound, as well as new intellectual property, and the ability to effortlessly execute on a broader range of integrations with enterprise software. Amelia has a reputation for excellence in conversational AI, being recognized as a leader in the Gartner® Magic Quadrant™ for Enterprise Conversational AI Platforms for 2 consecutive years.

UBS Investment Bank served as the exclusive financial advisor to SoundHound.