A competitor to Shazam and Amazon's Alexa, virtual voice assistant platform SoundHound is set to go public in a SPAC deal that values the company at roughly $2.1 billion.
Blank check company Archimedes Tech SPAC Partners Co. (ATSPU) has committed to a merger with the Santa Clara, California-based SoundHound, Reuters reports.
The company will provide SoundHound with around $133 million from Archimedes’ IPO and $111 million from private investment in public equity priced at $10.00 a share.
Contributors to the PIPE round include Koch Industries, MKaNN Ventures and Oracle Corp. (ORCL), an early SoundHound investor.
The new company will be known as SoundHound AI, Inc. and likely appear on Nasdaq under the ticker symbol SOUN once the transaction is complete. The merger, which is expected to close in the second quarter of 2022, places SoundHound's value at a total of $2.1 billion.
Founded by a group of Stanford friends in 2005, SoundHound creates a software that can integrate virtual voice assistants into other products: Users can make requests or ask for a song title to be found by singing or humming.
It is most commonly used by car manufacturers like Hyundai ( (KRW) ) and Mercedes-Benz ( (DAI) ) but Mastercard ( (MA) - Get Mastercard Inc. (MA) Report) and Snap ( (SNAP) - Get Snap, Inc. Class A Report) are also among its customers.
"This transaction will accelerate our mission to voice-enable the world with conversational intelligence," SoundHound CEO and co-founder Keyvan Mohajer said in a press statement.
Archimedes was created to make the purchase and, at the end of the transaction, any extra funds remaining will go toward SoundHound AI's working capital.
Mohajer, operating chief Michael Zagorsek and finance chief Nitesh Sharan will all remain in their roles as the company's management.