Voice AI company SoundHound goes public through SPAC merger

SoundHound Inc. agreed to merge with blank check company Archimedes Tech SPAC Partners Co. in a transaction that will see the voice artificial intelligence developer become a publicly listed company on the Nasdaq stock exchange.

The merged company will become SoundHound AI Inc. and will trade under the symbol SOUN, according to a Nov. 16 announcement.

The transaction gives SoundHound a pro forma enterprise value of about $2.1 billion. The deal is also expected to bring up to $244 million of gross proceeds, including the contribution of up to $133 million of cash held in Archimedes' trust account.

The proceeds will also include $111 million from private investment in public equity, which is priced at $10 per share.

Cash remaining on Archimedes' balance sheet at the closing of the transaction is expected to remain on SoundHound AI's balance sheet, to be used for working capital, growth capex and other general corporate purposes.

Meanwhile, the outstanding equity of SoundHound will be converted into equity of the combined company.

Top executives of SoundHound, including CEO and founder Keyvan Mohajer, will remain part of the company following the deal completion.

SoundHound and Archimedes' boards of directors approved the transaction, which is expected to close in the first quarter of 2022, subject to approvals from both companies' stockholders and from regulators.

Guggenheim Securities LLC is serving as exclusive financial adviser and capital markets adviser to SoundHound, while Ellenoff Grossman & Schole is serving as its legal adviser.

Meanwhile, EarlyBirdCapital Inc. is serving as financial adviser to Archimedes, and Loeb & Loeb LLP is serving as its legal adviser.