NiCE Acquires Agentic AI Company Cognigy in $955M EU Deal
AI customer experience leader NiCE has announced its acquisition of German agentic AI company Cognigy in a deal valued at approximately $955 million. This landmark transaction, reported on Tuesday, July 29, 2025, marks the largest AI acquisition in Europe to date, underscoring a significant boom in European AI investments.
The acquisition will see Cognigy’s advanced AI solutions integrated into NiCE’s CXone Mpower platform, with the aim of creating a unified system for automating customer interactions from front to back office. Cognigy, founded in Düsseldorf in 2016, specializes in AI-driven voice and chat solutions for customer service, enabling enterprises to deploy AI agents that can think, adapt, and act independently to deliver human-like service across more than 100 languages and various channels. This technology is particularly valued in regulated sectors like finance and energy due to its strong focus on data security, compliance, and control, rather than complete reliance on generative AI.
NiCE, a global leader in AI-powered customer experience solutions, is making this strategic move to accelerate its AI innovation agenda and strengthen its position in customer contact technology. Scott Russell, CEO of NiCE, stated that the acquisition is a “landmark moment” that will “set a new standard for customer experience in the AI era” by accelerating global AI adoption and expanding into new markets. Philipp Heltewig, co-founder and CEO of Cognigy, echoed this sentiment, highlighting that the partnership with NiCE provides access to a larger network and more resources for accelerated growth, enabling their customers to lead the future of customer experience.
Cognigy serves a global client base of over a thousand brands, including major names such as Toyota, Bosch, Nestlé, Lufthansa Group, and Mercedes-Benz. The company is projected to achieve an 80% estimated annual recurring revenue (ARR) growth in 2026 following the acquisition.
The transaction, unanimously approved by NiCE’s board, will be financed from NiCE’s existing funds, with approximately $50 million of the total amount subject to additional conditions and to be paid later in a combination of cash and shares. The acquisition is expected to be completed in the fourth quarter of 2025, pending regulatory approvals.
This acquisition is a significant indicator of the current surge in European AI investments. In the first quarter of 2025, European AI startups saw a 55% year-over-year growth in investment compared to the same period in 2024. Investment in AI-native startups in Europe reached €3.04 billion in the first half of 2025, a 61% increase from the first half of 2024. Specifically, agentic AI has shown remarkable growth, with deal count in the first half of 2025 climbing 226% year-on-year and funding reaching €1.7 billion. Experts note that while promising technology is emerging from Europe, the number of major tech acquisitions by European companies remains limited, suggesting a structural issue where innovation is leaving the continent. However, the NiCE-Cognigy deal represents a substantial European AI exit, potentially catalyzing further activity in the region.