SoundHound AI (SOUN) announced it has acquired Interactions, a company focused on AI-powered customer service and workflow tools, for $60 million in cash. The deal immediately got a vote of confidence from five-star-rated analyst Gil Luria at D.A. Davidson. Following the deal, Luria raised his price target on SOUN stock from $15 to $17 while keeping his Buy rating. Despite the acquisition, SOUN stock declined over 5% on Wednesday.
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For context, SoundHound AI specializes in voice recognition and natural language processing, offering AI-driven solutions across industries.
SoundHound AI Expands Its AI Edge
With this acquisition, SoundHound is expected to strengthen its leadership in Agentic AI and expand its presence in enterprise customer service. The deal also adds major brands to the company’s customer base, including tech device companies, insurers, automakers, and other top Fortune 100 firms.
The $60 million deal is expected to immediately boost operating profitability, with potential additional payments tied to revenue milestones. After the transaction, the combined company will hold over $270 million in cash and carry no debt.
SOUN’s Acquisition Gets Analyst Nod
Davidson’s Luria views the acquisition positively, highlighting that it brings major new clients for SoundHound and is expected to boost margins immediately. He also believes the deal further strengthens SoundHound’s leadership in the AI-powered voice assistant market, especially in the enterprise segment, where Interactions has strong established relationships.
Luria’s new price target of $17 implies an upside of almost 15% from current levels.
What Is the Price Target for SOUN?
According to TipRanks, SOUN stock has received a Strong Buy consensus rating, with five Buys and one Hold assigned in the last three months. The average SoundHound stock price target is $15.33, suggesting a potential upside of 3.23% from the current level.
