SoundHound AI acquires Interactions to strengthen its leadership in Agentic AI for customer service

SoundHound AI, Inc., a global leader in voice and conversational AI, is acquiring Interactions, a pioneer in AI for customer service and workflow orchestration, to strengthen and extend SoundHound’s growing leadership in Agentic AI along with accelerating its market penetration in customer service across enterprise businesses.

According to the companies, this combination also introduces major new powerhouse brands to the SoundHound customer portfolio, including global consumer icons, large technology device brands, insurers, automakers, and other preeminent Fortune 100 companies across industries.

Interactions provides businesses with AI-powered voice assistants to enhance customer engagement while improving productivity. The potential synergies with SoundHound’s existing solutions, including complementary capabilities, are expected to grow the company’s enterprise business.

“SoundHound has consistently set itself apart from the pack, with exceptional technology, a history of unparalleled innovation, and a deep understanding of what businesses need to uplevel their customer experience,” said Mike Iacobucci, CEO of Interactions. “The union of our two companies will give the businesses we serve unrivalled choice, flexibility, and scale. And as the market shifts towards more agentic interactions, SoundHound can rise to meet that need.”

SoundHound will provide a full-suite of options for omnichannel Agentic AI and offer a path to full AI automation for customers that have historically relied exclusively on human-in-the-loop or agent-only solutions, significantly expanding SoundHound's addressable market. The company’s customer experience platform is also designed to integrate seamlessly into any contact center, providing innovation and scale for any business.

“We’re rapidly moving towards a future of AI agents, where voice and conversational AI are absolutely integral to high quality customer service. This has always been SoundHound’s vision, and we’re committed to working with the very best to get there,” said Keyvan Mohajer, CEO and co-founder of SoundHound AI. “Interactions is unquestionably a pioneer in the field, with a client roster with incredible breadth and depth. Bringing them on board makes SoundHound even stronger as we establish the company as a true leader for the new AI era.”

The acquisition consideration consists of approximately $60 million in cash payable at close, with the potential for additional payments earned contingent on the achievement of certain revenue milestones.

The transaction is expected to be immediately accretive to SoundHound's operating profitability. At closing, the combined company holds over $270 million of cash on hand with no outstanding debt.

For more information about this news, visit www.soundhound.com.