Business · Companies · 7 hrs ago
Toronto AI firm Ada agrees to merge with Dialpad in $600-million deal
Toronto-based Ada has agreed to combine with U.S. software company Dialpad in an all-share deal.
The agreement values Ada at about $600-million, or US$430-million, according to people familiar with the deal.
That is far below Ada’s US$1.2-billion valuation in 2021, when it raised US$130-million during a boom in technology investing.
Founded in 2016, Ada makes software that answers customer questions and can also update records, change bookings and issue refunds.
The company has faced stronger competition and slower revenue growth, while cutting costs and laying off workers; its annual revenue was recently about US$50-million.
The deal brings Ada together with a larger company that sells contact-centre software, though no further details about what happens next were provided.
Toronto-based AI customer service company Ada has agreed to combine with U.S. software company Dialpad in an all-share deal valuing Ada at about $600-million.
The valuation is about US$430-million, according to two sources familiar with the matter.
That is down from Ada’s US$1.2-billion valuation when it raised US$130-million during the pandemic technology boom.
Ada’s overall revenue was recently running at about US$50-million annually, the sources said.
The deal comes after Ada cut costs and faced increased competition in the AI chatbot market.
- Who
- Toronto-based Ada and U.S. company Dialpad.
- What
- They agreed to combine in an all-share deal valuing Ada at about $600-million.
- When
- The deal was reported on Nov. 3, 2026; the agreement date is not stated.
- Where
- Ada is based in Toronto. Dialpad is based in the San Francisco Bay Area.
- Why
- Not stated.
This story does not have two clearly opposing sides.
Mike Murchison and David Hariri co-founded Ada.
Technology valuations began to fall, according to the article.
OpenAI launched ChatGPT, amid increasing competition for Ada.
Ada rolled out voice agents to answer customer-service phone calls.
Ada eliminated half of its marketing team.
Ada laid off 25 employees, according to sources cited by the article.
- Deal value
- About $600-million, or about US$430-million
- Deal structure
- All-share combination
- Ada’s earlier valuation
- US$1.2-billion
- Earlier financing
- US$130-million, led by Spark Capital
- Ada’s recent annual revenue
- About US$50-million
- Ada’s workforce
- Roughly 200 employees