US customer service company NiCE acquires German AI startup Cognigy
Europe's Largest AI Exit: US Customer Service Company NiCE Acquires German Startup Cognigy
In a significant move for the AI industry, US customer service software company NiCE has announced the acquisition of German startup Cognigy for approximately $955 million. The deal, expected to close in Q4 2025, marks Europe's largest AI startup exit to date.
Cognigy, founded in 2016, is renowned for its advanced conversational AI technology. With offices in Duesseldorf and San Francisco, the startup has gained a global reputation, boasting clients such as Toyota, Bosch, and Frontier Airlines. Its AI systems automate diverse service tasks across channels, and the company projects an impressive 80% annual recurring revenue (ARR) growth in 2026.
The acquisition follows a prior partnership between NiCE and Cognigy, established after NiCE faced limitations with earlier conversational AI solutions like Amelia bots. Seeking a more scalable, real-time integrated platform, NiCE found what they needed in Cognigy, leading to a formal partnership in early 2024 before the acquisition move.
Cognigy's AI technology is set to integrate into NiCE's AI-first customer experience platform, CXone, enhancing automation and omnichannel service capabilities. This union is expected to accelerate global AI adoption, expand into new global markets, and create game-changing value for NiCE's customers, partners, and shareholders.
The acquisition also aims to transform NiCE’s telecom and outbound dialing solutions using Cognigy's agentic AI technology for smarter, personalised AI-driven conversations. Cognigy manages AI agents capable of handling tens of thousands of customer conversations simultaneously, a capability that is expected to significantly improve NiCE's services.
Philipp Heltewig, co-founder and CEO of Cognigy, described the transaction as a "pivotal step forward" for the company. Scott Russell, CEO of NiCE, described the acquisition as a "landmark moment" and a "strategic move" that fast-tracks their AI innovation agenda.
Cognigy has raised more than $150m in funding and has approximately 175 customers across over 1,000 brands. The startup has recently relocated its U.S. headquarters to North Texas, enhancing its North American presence ahead of the acquisition.
NiCE is a US customer service firm headquartered in New Jersey and listed on the Nasdaq and Tel Aviv stock exchanges. The acquisition is thought to be a significant step towards uniting trusted AI and human interactions, shaping the future of customer experience.
Thomas Rubens, partner at DN Capital, stated that the deal marks "Europe's largest ever AI exit". The acquisition underpins a strategic move to consolidate conversational AI and customer experience platforms for enhanced scalability and automation in enterprise service environments.
The contact center AI market is forecasted to reach $7.1 billion by 2030, driven by increasing demand for AI-powered automation and personalized customer interactions. This acquisition is set to play a crucial role in this growth, accelerating AI adoption across both the front and back office.
Artificial-intelligence technology developed by Cognigy is set to be integrated into NiCE's AI-first customer experience platform, CXone, enhancing automation and omnichannel service capabilities. Cognigy's agentic AI technology, capable of handling tens of thousands of customer conversations simultaneously, is expected to significantly improve NiCE's services as the company aims to transform its telecom and outbound dialing solutions.
