SoundHound, a US-based voice intelligence software provider backed by corporates Tencent, Daimler, Hyundai, Midea Group, Orange, Sompo, Samsung, Nvidia and Recruit, has agreed to list through a reverse takeover.
The deal will involve SoundHound joining forces with Archimedes Tech SPAC Partners Co, a special purpose acquisition company that floated on the Nasdaq Capital Market in a $120m initial public offering in March this year, at a $2.1bn pro forma valuation.
Computing technology provider Oracle, industrial and chemical group Koch Industries, financial services firm Qatar First Bank and venture capital firm MKann Ventures are anchoring a $111m private investment in public equity (PIPE) financing supporting the deal.
The other participants in the PIPE are television technology provider Vizio, contract manufacturer Foxconn, consumer electronics producer HTC, insurance firm Sompo, property developer Provco Group, Cota Capital, Structural Capital and Pejman Nozad.
SoundHound is the creator of an artificial intelligence-equipped voice system which allows users of consumer products to interact with the systems using their voice.
The company’s most recent round involved it raising $100m from carmakers Daimler and Hyundai, internet and gaming group Tencent, home appliance manufacturer Midea and telecommunications firm Orange at a valuation topping $1bn, taking its total funding to $215m.
Electronics producer Samsung’s Catalyst Fund, graphics technology provider Nvidia’s GPU Ventures unit and Recruit’s RSI Fund all took part in a $75m round for SoundHound the previous year that included Sompo and financial services provider Nomura Holdings.
MKann Ventures, SharesPost, Kleiner Perkins Caufield & Byers, Global Catalyst Partners, Walden Venture Capital and TransLink Capital also contributed to the 2017 round.
Keyvan Mohajer, SoundHound’s co-founder and chief executive, said: “We believe voice AI is poised to create the next major disruption in computing. Companies across industries recognise that voice AI is essential to customer retention, brand loyalty, market competitiveness and future success.
“The growing demand for those companies to own their customer relationships and data have positioned SoundHound as a leading solution for voice assistants globally. This transaction will accelerate our mission to voice-enable the world with conversational intelligence.”
