New York, August 08, 2024 - PRISM MarketView - In June, the global AI leader SoundHound AI (SOUN) announced the acquisition of an online ordering platform that connects restaurants and local customers by the name of Allset. Today the company has shown that it is continuing to make moves on the M&A front as it now has announced the acquisition of leading enterprise AI software company, Amelia. Shares have traded upwards of 20% as the stock sits as one of today’s top leaders of the PRISM NextGen Tech and AI Index.
As the company continues to pursue its vision of a voice commerce ecosystem, these two acquisitions now widen its scope and ability to service multiple industries that include retail, financial services, healthcare automotive and smart devices. SoundHound now provides its voice and conversational generative AI services to nearly 200 marquee customers that include some of the largest multinational enterprise brands, top 15 global banks and Fortune 500 organizations.
The Amelia acquisition purchase price was $80M in cash and equity with partial payment and assumption of Amelia’s debt and future earnout potential. Amela’s expected recurring AI software revenue is over $45M with 2025 estimated combined revenue at over $150M. The transaction will likely be accretive to SoundHound’s earnings by the second half of 2025. As of the transaction close, the company has ~$165M cash position with $39M in debt.
This acquisition positions SoundHound AI to capitalize on gaining market share and excel in the space as enterprise spending on generative AI continues growing and is expected to reach between $175Bn – $250Bn by 2027.
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