Sweden-headquartered Truecaller on Friday said it has entered into an agreement to acquire the Israeli company CallHero, reported news agency PTI.
CallHero has developed a unique technical solution for both Android and iPhone, with an AI-enabled assistant.
Its assistant can answer calls, take messages and even block your calendar. The feature will be integrated into Truecaller in a phased manner.
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 company said in statement.
The purpose of the issue of new shares is to strengthen the long-term commitment to Truecaller for certain key persons at CallHero, it added.
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.
The acquisition, which will be financed through existing cash and newly issued shares in Truecaller AB, is subject to customary closing conditions. The acquisition is expected to be completed during the first quarter of 2022.
Alan Mamedi, CEO and Co-founder of Truecaller, said 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 is going to strengthen our offering. The service will start in the US first since that’s where CallHero operated but our ambition is to roll out the service in all our markets, including India,” Mamedi said.