NiCE to acquire conversational AI leader Cognigy for $955 million

HOBOKEN, N.J. - NiCE (NASDAQ:NICE), a provider of AI-powered customer experience solutions with a market capitalization of $10.3 billion and annual revenue of $2.8 billion, announced Monday it has entered into a definitive agreement to acquire Cognigy, a conversational and agentic AI company, for approximately $955 million. According to InvestingPro data, NICE maintains strong financial health with an overall score of 3.16 out of 4, labeled as "GREAT."

The acquisition aims to combine NiCE’s CXone Mpower platform with Cognigy’s AI capabilities to accelerate AI adoption in customer service delivery across front and back office operations.

"This is a landmark moment for NiCE, a strategic move that fast-tracks our AI innovation agenda and sets a new standard for customer experience in the AI era," said Scott Russell, CEO of NiCE, in a statement based on the company’s press release.

Cognigy’s platform, Cognigy.AI, enables enterprises to deploy AI agents that deliver personalized service in over 100 languages across multiple channels. The company serves brands including Mercedes-Benz, Nestlé, and Lufthansa Group, and is projected to deliver approximately 80% estimated ARR growth in 2026.

The transaction values Cognigy at $955 million, including an approximate $50 million time-bound holdback comprised of $25 million in cash and 158,000 American Depositary Shares. NICE will finance the acquisition with funds on hand, supported by its strong balance sheet position. InvestingPro analysis indicates the company holds more cash than debt, with a comfortable debt-to-equity ratio of 0.15.

NiCE’s Board of Directors has unanimously approved the agreement. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2025.

Jefferies LLC is acting as exclusive financial advisor to NiCE, while Qatalyst Partners is serving as exclusive financial advisor to the sellers.

NICE management will host a conference call today at 8:30 AM ET to discuss the acquisition. For investors seeking deeper insights into NICE’s financials and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of its coverage of 1,400+ top US stocks. The platform reveals 8 additional key investment tips for NICE, along with detailed valuation metrics and peer comparisons.

In other recent news, NICE Systems Ltd has been the focus of several analyst updates and developments. The company received an $8.5 million award from the Federal Aviation Administration, a significant achievement that has been noted by Citizens JMP, which reiterated its Market Outperform rating with a $300 price target. DA Davidson also raised its price target for NICE Systems to $195, maintaining a Buy rating, following updates from the company’s management on its customer experience market expansion. Cantor Fitzgerald maintained a Neutral rating with a $161 price target, observing NICE’s strategic pivot towards an AI platform and its enhanced go-to-market strategy. Morgan Stanley reiterated its Overweight rating with a $202 price target, highlighting NICE’s $208 million in annual recurring revenue from AI in the first quarter of 2025. Additionally, JMP Securities reaffirmed its Market Outperform rating and $300 price target after discussions with NICE’s customers and partners about future spending plans. These developments reflect NICE Systems’ ongoing efforts in AI adoption and market expansion, as noted by multiple analyst firms.

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