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SANTA CLARA - SoundHound AI, Inc. (NASDAQ:SOUN), a $6.23 billion market cap company whose stock has surged 230.95% over the past year, announced Tuesday it has acquired Interactions, a company specializing in AI for customer service and workflow orchestration, in a move to strengthen its position in conversational AI technology. According to InvestingPro data, SoundHound maintains a FAIR financial health score, with 14 key investment insights available to subscribers.
The deal involves approximately $60 million in cash payable at closing, with potential additional payments contingent on meeting certain revenue milestones. According to the company, the transaction is expected to be immediately accretive to SoundHound’s operating profitability.
The acquisition brings new clients to SoundHound’s portfolio, including Fortune 100 companies across retail, insurance, technology, and automotive sectors. The combined company will hold over $270 million in cash with no outstanding debt.
SoundHound CEO Keyvan Mohajer said in the press release statement, "We’re rapidly moving towards a future of AI agents, where voice and conversational AI are absolutely integral to high quality customer service."
The acquisition follows what the company described as its strongest quarter to date, with InvestingPro data showing impressive revenue growth of 136.97% year-over-year. SoundHound also reported processing nearly 3 billion conversational AI queries per quarter. While currently trading above its InvestingPro Fair Value, analysts anticipate continued sales growth in the current year.
With the integration of Interactions’ technology, SoundHound aims to provide omnichannel AI solutions and automation options for businesses that have traditionally relied on human-in-the-loop or agent-only customer service solutions.
The combined intellectual property portfolio will include nearly 400 patents, according to the company statement.
This marks another strategic acquisition for SoundHound since going public in 2022, as the company continues to expand its presence in the conversational AI market.
In other recent news, SoundHound AI Inc. reported a significant increase in its second-quarter 2025 revenue, which surged by 217% year-over-year to $42.7 million, exceeding analyst expectations. The company’s earnings per share also outperformed forecasts, recording a loss of $0.03 compared to the anticipated loss of $0.09. Additionally, Northland upgraded SoundHound AI to Outperform from Market Perform and raised its price target to $14.50 from $8, citing the company’s return to pro forma organic growth and a strong pipeline potential for the latter half of the year.
SoundHound AI has also launched Vision AI, a visual understanding engine designed to complement its existing voice-first platform. This new technology integrates visual perception with SoundHound’s capabilities in speech recognition and natural language understanding. Furthermore, SoundHound’s AI assistant is now available in select Jeep vehicles across Europe, enabling conversational interactions with in-vehicle systems. Lastly, Primary Health Solutions has partnered with SoundHound AI to implement an AI-powered patient engagement platform named "Denise" to streamline appointment management and reduce patient hold times.
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