Truecaller, global platform for verifying contacts and blocking unwanted communications, has entered into an agreement to acquire the Israeli company CallHero (www.getcallhero.com).
CallHero has developed a unique technical solution for both Android and iPhone, which helps users verify and answer calls with the help of a digital assistant, a Smart Agent. The solution is currently offered to consumers and companies in the USA, thereby strengthening Truecaller's offering further, according to a press statement.
“CallHero gives the user intelligent support in handling incoming calls with the help of an AI-based assistant who answers the call. The conversation between the caller and the assistant is visible in text-based format, live in the app. This service will help our users prioritize what is relevant and important without having to talk. The technology that CallHero has developed strengthens our offering in the US much faster by integrating it into Truecaller, but our ambition is of course to roll out the service in all our markets. CallHero today has a well-developed advanced functionality for iPhone users, which is important in the western world, but also a valuable complement to our work to make Truecaller more efficient and user-friendly for both iPhone and Android users worldwide ", said Alan Mamedi, CEO and co-founder of Truecaller.
The agreed purchase price amounts to $4.5 million, of which $2.6 million will be paid in cash upon completion of the acquisition and $1.9 million through newly issued shares in Truecaller.
The purpose of the issue of new shares is to strengthen the long-term commitment to Truecaller for certain key persons at CallHero. In addition, a potential additional purchase price of a maximum of $2 million will be paid, provided that certain goals are achieved for a period of up to four years after the transaction is completed. Completion of the acquisition is subject to customary closing conditions and is expected to be completed during the first quarter of 2022.
The acquisition will be financed through existing cash and newly issued shares in Truecaller AB. The acquisition is primarily a technology and competence acquisition and is not considered to have a material impact on the results in 2022.
