Core Viewpoint - SoundHound AI, Inc. has agreed to acquire Interactions Corporation for up to $85 million, which includes $60 million in cash and a $25 million performance-based earn-out [1] Group 1: Acquisition Details - The acquisition is part of SoundHound's horizontal expansion strategy, which has contributed to its recent growth [2] - Interactions Corporation offers complementary AI technology and a diverse customer base across various industries, including retail, consumer technology, insurance, and automotive [2] Group 2: Financial Implications - The acquisition is expected to create significant cross-sell and upsell opportunities as SoundHound integrates its solutions into Interactions' client base [3] - SoundHound reported stronger-than-expected financial results, with a second-quarter revenue of $42.7 million, surpassing the forecast of $32.9 million [5] - Management has raised its 2025 sales outlook to between $160 million and $178 million, exceeding Wall Street's consensus of $159.5 million [5] Group 3: Analyst Insights - H.C. Wainwright analyst Scott Buck maintains a Buy rating with an $18 price target, indicating a potential upside of approximately 20% from current levels [4] - The acquisition is seen as enhancing SoundHound's financial profile and growth pipeline, reinforcing confidence in achieving operating profitability by late 2025 [6]