Nasdaq-listed voice recognition firm SoundHound AI has acquired Amelia, an enterprise artificial intelligence (AI) software company, for $80m in cash and equity.
This acquisition includes the assumption of Amelia’s debt and the potential for future earnouts based on revenue milestones.
The merger with Amelia is expected to enhance SoundHound AI’s offerings in the voice and conversational generative AI arena. It will expand SoundHound AI’s reach across various industries including retail, financial services, automotive, healthcare, smart devices, and restaurants.
Together, the companies are said to combine extensive experience in conversational AI and complementary product portfolios to deliver scalable customer service solutions to a broad array of businesses. These include multinational enterprise brands, top global banks, and Fortune 500 companies, bringing the combined customer base to nearly 200 clients.
Amelia president Lanham Napier said: “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.
“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.”
This acquisition is said to mark a significant expansion of SoundHound AI’s customer service capabilities, in a context where voice and conversational AI technologies are seeing accelerated adoption.
The merger is expected to provide SoundHound AI with a stronger position in the conversational AI market, access to new, substantial industry sectors such as healthcare and financial services, and a more diversified customer base.
The deal also introduces numerous new voice commerce opportunities, including food ordering, ticket purchases, and appointment scheduling through millions of devices powered by SoundHound AI.
Financial projections post-acquisition anticipate that the combined revenue in 2025 will exceed $150m, with Amelia contributing over $45m in recurring AI software revenue.
The transaction is expected to enhance SoundHound’s earnings in the second half of 2025, with substantial revenue and cost synergies promoting growth and profitability in subsequent years. At closing, the merged companies will hold approximately $160m in cash and $39m in debt.
This acquisition also extends SoundHound AI’s strategic vision for a voice commerce ecosystem, which includes integrating previous acquisitions such as the food ordering platform Allset. With Amelia, the scope now expands to include potential consumer transactions in sectors like healthcare, financial services, and retail.
SoundHound AI CEO and co-founder Keyvan Mohajer said: “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.
“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.”
UBS Investment Bank served as the exclusive financial adviser to SoundHound AI during this transaction.
