Ada Merges With Dialpad in Valuation Reset
AI-generated image · Bay Street Wire
The Toronto-based AI customer service firm joins forces with US-based Dialpad in a deal that reflects a significant drop from its 2021 peak.
Toronto-based Ada has confirmed, as BetaKit first reported, that it is merging with California-based Dialpad to establish a new leader in agentic customer communications. The transaction, announced Wednesday via a blog post and X, is expected to close around Nov. 12.
According to reporting from The Globe and Mail, the all-share deal values Ada at roughly $600 million CAD. This figure represents a sharp decline from the $1.2 billion USD ($1.7 billion CAD) valuation the company held during its Series C financing in 2021, a period BetaKit describes as the peak of the pandemic tech bubble.
Founded in 2016 by CEO Mike Murchison and former chief product architect David Hariri, Ada initially focused on customer service chatbots before pivoting toward AI agents and large language models (LLMs). Dialpad, founded in 2011, offers sales engagement, contact centre, and communications software.
Under the terms of the merger, Dialpad co-founder and CEO Craig Walker will lead the combined entity, while Murchison will transition to the role of chief AI officer. Murchison stated that the merger will accelerate the joint product roadmap.
Allen Lau, co-founder and former CEO of Wattpad and an early investor via Two Small Fish Ventures, praised the team for navigating challenges to build something of value. The merger comes as Ada competes with better-funded rivals such as Sierra and Decagon in a landscape where BetaKit notes many Canadian tech firms are struggling to meet previous high valuations.