SoundHound AI, a voice artificial intelligence (AI) solutions provider, has signed a definitive agreement to acquire SYNQ3 Restaurant Solutions for $25m.
SYNQ3 provides voice AI and other technology solutions to the restaurant industry.
SYNQ3 Restaurant Solutions co-founder and CEO Steve Bigari stated: “SoundHound AI and SYNQ3 will provide our restaurant partners with a formidable voice solution that we believe significantly surpasses the competition.”
SYNQ3 stockholders will receive 20% of the consideration in cash with the remaining 80% in the form of SoundHound’s Class A common stock shares.
The deal will position SoundHound as the leading supplier of voice AI for restaurants. It will add SYNQ3’s brands across the drive-thru, fast casual and casual segments to SoundHound’s customer base.
The transaction will combine SoundHound AI innovation with decades of SYNQ3 industry expertise and established relationships.
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Additional immediate business benefits from the deal include more than 100,000 restaurant locations in the combined pipeline and more than 10,000 signed.
SYNQ3’s customer base also benefits from a broad suite of AI products and from value-added services such as dynamic interaction, smart answering and SoundHound’s new product for the restaurant industry, Employee Assist, which was launched in November 2023.
The deal will result in revenue synergies with SoundHound’s existing restaurant business and enhanced AI models using data from more than 50 million interactions to strengthen product performance.
SoundHound AI co-founder and CEO Keyvan Mohajer stated: “In joining forces, SoundHound AI and SYNQ3 will be the go-to standard for cutting-edge voice and conversational AI solutions for the restaurant industry.”
The deal is expected to close in the first quarter of 2024.
Based on revenue targets being achieved up to 2026, an additional consideration of up to $4m could be realised.