NiCE has announced it has entered into a definitive agreement to acquire Cognigy, a company that specialises in conversational and agentic artificial intelligence, in a transaction that values Cognigy at approximately USD $955 million.
The move combines NiCE's CXone Mpower customer experience platform with Cognigy's capabilities in AI agents, forming an integrated enterprise-grade CX AI solution. The acquisition is intended to accelerate the adoption of AI tools for customer service across both front and back office operations globally.
Expanding AI in customer experience
The transaction, which has been unanimously approved by NiCE's board of directors, includes an approximate USD $50 million time-bound holdback. This holdback is made up of USD $25 million in cash and 158,000 American Depositary Shares. The deal will be financed using funds held by NiCE, and is subject to the usual closing conditions, including regulatory approvals. Completion is currently expected in the fourth quarter of 2025, dependent on clearance from the relevant authorities.
Scott Russell, Chief Executive Officer at NiCE, commented on the strategic decision, stating, "This is a landmark moment for NiCE, a strategic move that fast-tracks our AI innovation agenda and sets a new standard for customer experience in the AI era. By bringing a market leader in enterprise-grade conversational and agentic AI into the fold, we are accelerating global AI adoption, expanding into new global markets, and creating game-changing value for our customers, partners, and shareholders. Together, we are significantly advancing the future of AI-first customer experience."
Capabilities of Cognigy.AI
Cognigy's technology, including its Cognigy.AI platform, allows enterprises to deploy artificial intelligence agents that operate independently, providing human-like service across more than 100 languages and multiple channels. These AI agents are designed to deliver immediate, personalised support, enabling human staff to dedicate time to more complex or high-value customer needs.
Cognigy serves a portfolio of brands that includes Mercedes-Benz, Nestlé, and Lufthansa Group. The company's platform is projected to achieve an estimated 80 per cent annual recurring revenue growth in 2026. The addition of Cognigy's solutions is expected to enhance NiCE's ability to provide a unified platform orchestrating both AI and human agents.
Philipp Heltewig, Co-founder and Chief Executive Officer at Cognigy, said, "This transaction represents a pivotal step forward for Cognigy, one that brings immense opportunity for our customers and employees. NiCE is an exceptional organisation whose global reach, deep expertise, and relentless focus on innovation will accelerate our growth and enhance the value we bring to our customers and partners. Together, we are uniquely positioned to shape the future of customer experience, uniting the best of trusted AI and human interactions."
Financial and advisory details
NiCE's acquisition of Cognigy will be financed from existing company funds, with the expectation that the integration of Cognigy will expand NiCE's reach and capabilities in the customer experience AI sector. The completion of the transaction is contingent upon satisfaction of customary closing conditions, including regulatory approval. NiCE has appointed Jefferies LLC as exclusive financial advisor for this acquisition, while the sellers have been advised by Qatalyst Partners.
Cognigy's AI Agent platform is currently used by more than 1,000 brands worldwide, providing multilingual and personalised customer service across industries. According to the information provided, the acquisition is intended to support clients in automating and improving service delivery and augments the roles of human contact centre staff by reducing their routine workload.
