NICE stock surges after $955 million Cognigy acquisition announcement

Published 28/07/2025, 13:54
© Reuters

Investing.com -- NICE Ltd (NASDAQ:NICE) stock jumped 7.9% in pre-market trading after the AI-powered customer experience company announced it has entered into a definitive agreement to acquire Cognigy, a leader in conversational and agentic AI, for approximately $955 million.

The strategic acquisition aims to combine NICE’s CXone Mpower platform with Cognigy’s AI capabilities to accelerate AI-first customer service delivery. The deal will enable organizations to orchestrate AI agents across front and back office operations through a unified CX AI platform.

"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.

Cognigy’s platform, Cognigy.AI, allows enterprises to deploy AI agents that deliver human-like service in over 100 languages across multiple channels. The company serves major brands including Mercedes-Benz (OTC:MBGAF), Nestlé, and Lufthansa Group, and is expected to achieve approximately 80% estimated ARR growth in 2026.

The transaction, which values Cognigy at approximately $955 million, includes a $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.

NICE’s Board of Directors unanimously approved the agreement, with the transaction expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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