NiCE Ltd., a publicly traded contact center software provider headquartered in New Jersey, plans to acquire Cognigy GmbH, a global market leader in conversational and agentic AI, for US$955 million.

The deal is expected to close in the fourth quarter of 2025. Following the announcement, shares of NiCE increased by over 4%.

The acquisition will allow NiCE to integrate Cognigy’s technology into its CXone Mpower platform.

This integration will enhance both companies’ capabilities in AI automation and support tools.

NiCE recently reported a 6% year-over-year increase in quarterly sales.

Meanwhile, Cognigy anticipates an 80% growth in annualized revenue for the next year.

NiCE offers a platform called CXone Mpower, which assists enterprises in managing customer support operations.

Its features include AI-driven automation and performance measurement tools. Cognigy develops Cognigy.AI, a cloud-based platform that enables businesses to create custom AI agents for automating customer service tasks using low-code tools and large language models.

Cognigy’s platform allows AI agents to handle customer queries and perform tasks such as processing bookings or issuing refunds. It also supports multimodal inputs, enabling users to upload images for issue resolution.

The company uses AI models from providers like OpenAI and Anthropic. It has mechanisms in place to switch models if processing errors occur.

🔗 Source: SiliconANGLE

🧠 Food for thought

1️⃣ Contact center software consolidation accelerates as AI reshapes the market

The NiCE-Cognigy deal reflects a broader wave of consolidation sweeping through the contact center software industry, driven by companies seeking to rapidly acquire AI capabilities.

Major acquisitions in recent years include Genesys’s $1.4 billion purchase of Interactive Intelligence and multiple smaller deals as companies race to build comprehensive AI-powered platforms 1, 2.

This consolidation pattern aligns with market growth projections, with the global contact center software market expected to reach $213.54 billion by 2032, growing at an 18.8% CAGR 3.