Toronto's Ada merges with Dialpad at reported $600 million value

Ada, a Toronto customer-service technology company, is merging with California’s Dialpad, the companies said on November 4. Dialpad, around since 2011, sells communications, contact-centre and sales engagement software to businesses. The companies did not disclose financial terms, but BetaKit, citing The Globe and Mail, reported that the all-share deal values Ada at about $600 million. That is a fraction of the US$1.2 billion Ada was worth when it closed its Series C round in 2021.

Ada competes against better-funded rivals such as Decagon and Sierra. It is not alone: many other Canadian tech firms that raised money at sky-high valuations are also struggling to grow into them.

The deal is expected to close on or about November 12. After that, Dialpad’s Craig Walker will be chief executive of the combined company, and Ada’s Mike Murchison Chief AI Officer.

For context, a Council of Canadian Innovators study found that leadership and decision-making moved abroad in 93% of cases after foreign acquisitions. As Toronto Ledger reported on October 24, Toronto’s Ribbon also agreed to a takeover.

Sources: Dialpad · BetaKit