Investing.com — Shares of SoundHound AI Inc (NASDAQ:SOUN) fell 4.3% on Tuesday following the announcement of a definitive agreement to acquire LivePerson (NASDAQ:LPSN), a pioneer in enterprise conversational AI.
The Santa Clara-based voice AI company is acquiring LivePerson for an equity value of $43 million, representing a premium of approximately 22% to the 30-day volume-weighted average value. The transaction implies a total enterprise value of $250 million after taking into account significant reductions on LivePerson’s remaining debt.
The acquisition combines SoundHound’s voice AI platform with LivePerson’s digital engagement capabilities, which power one billion customer messages per month. The combined company will serve enterprise customers in more than 30 countries, including 12 of the world’s 15 largest banks, 4 of the world’s 5 largest airlines and 4 of the world’s 5 largest automakers.
At closing, SoundHound expects to receive $74 million of LivePerson’s cash balance prior to repayment of the 2026 convertible senior notes. The combined company is expected to have a strong, debt-free balance sheet once SoundHound repays the discounted debt with a mix of cash and equity.
SoundHound expects its 2027 revenue range to be between $350 million and $400 million minimum, with at least $100 million contributed by LivePerson customers. The combined business is expected to reach $500 million in revenue based on existing customer base alone.
“This transformational combination brings together two complementary pioneers in conversational AI,” said Keyvan Mohajer, CEO and co-founder of SoundHound AI.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions. This is SoundHound’s fifth strategic acquisition, following the previous integrations of Amelia and Interactions.
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