AI voice technology "unicorn" SoundHound AI spent $80 million to acquire Amelia AI
SoundHound AI announced the acquisition of artificial intelligence startup Amelia AI for $80 million, expecting to increase revenue in the second half of next year. The combined company's revenue will exceed $150 million. After the transaction, the combined company will have approximately $160 million in cash and $39 million in debt. The CEO of SoundHound expressed anticipation to leverage the capabilities of both parties to provide the best artificial intelligence customer support solutions. SoundHound's stock price fell nearly 5% after hours
According to the Zhitong Finance APP, the "unicorn" SoundHound AI (SOUN.US), which focuses on voice artificial intelligence and conversational intelligence technology, announced on Thursday that it will acquire the artificial intelligence startup Amelia AI for $80 million in cash and stock.
In a statement, SoundHound stated that the transaction is expected to increase revenue in the second half of next year, with the combined company's revenue exceeding $150 million. Additionally, meaningful revenue and cost synergies are expected in the coming years to drive growth and profitability expansion.
Once the transaction is completed, the merged company will have approximately $160 million in cash and $39 million in debt, according to SoundHound.
Keyvan Mohajer, CEO and co-founder of SoundHound, stated in a declaration, "Amelia is an innovative company that shares our passion for AI conversation. We look forward to leveraging our combined capabilities to provide the best AI customer support solutions."
According to previous reports, Amelia has raised at least $189 million in funding, including $175 million in March 2023.
After the U.S. stock market closed on Thursday, SoundHound also released its mixed second-quarter results, with revenue growth slowing but stronger than expected. The company raised its full-year revenue guidance, but the severity of the second-quarter loss expansion exceeded market expectations.
In the financial report, SoundHound further detailed the acquisition of Amelia, stating that the upward revision of the annual revenue guidance takes into account the impact of acquiring Amelia. The company now expects annual revenue to be at least $80 million this year, up at least 3.9% to 23% from the previous revenue guidance range of $65 million to $77 million.
SoundHound's stock price fell nearly 5% after hours. As of Thursday's close, the stock had risen by 21.16%, accumulating an increase of over 102% year-to-date