SoundHound AI announced on Thursday that it will acquire artificial intelligence start-up Amelia AI for $80 million in cash and equity.
The Smart Financial APP learned that SoundHound AI, a "unicorn" that specializes in speech artificial intelligence and conversational intelligence technology (SOUN.US), announced on Thursday that it will acquire artificial intelligence start-up Amelia AI for $80 million in cash and equity.
In a statement, SoundHound said the deal is expected to boost earnings in the second half of next year, with combined company revenue expected to exceed $1.5 billion. In addition, meaningful revenue and cost synergies are expected to emerge in the coming years, driving growth and profitability expansion.
After the transaction is completed, the combined company is expected to have approximately $160 million in cash and $39 million in debt, according to SoundHound.
"Amelia is an innovative company that shares our passion for conversational AI," said Keyvan Mohajer, CEO and co-founder of SoundHound, in a statement. "We look forward to leveraging our combined abilities to provide the best AI customer support solutions."
According to previous reports, Amelia has raised at least $189 million, including $175 million in March 2023.
After the post-market trading on Thursday, SoundHound also announced second-quarter results that were mixed but better than expected, raising its full-year revenue guidance, but the severity of the second-quarter loss expansion exceeded market expectations.
In the financial report, SoundHound further introduced the acquisition of Amelia, saying that the revision of the annual revenue guidance took into account the impact of the acquisition of Amelia. It is currently expected that the full-year revenue this year will be at least $80 million, which is at least 3.9% to 23% higher than the previous revenue guidance range of $65 million to $77 million.
After hours trading, SoundHound's stock price fell by nearly 5%. As of Thursday's close, the stock rose by 21.16%, and cumulatively rose by more than 102% this year.