Five9 has entered into a definitive agreement to acquire Level AI, a Mountain View, California-based conversation intelligence company, for approximately $325 million in cash, the companies said on November 5. Five9 expects to complete the transaction in this year's fourth quarter, provided standard closing conditions are met. Five9 said its board unanimously approved the agreement and it will pay from its balance sheet.
Level AI builds tools that listen to customer service calls, give agents real-time guidance, and automate parts of contact center work. Five9 said the company's applications are already in production with enterprise customers and handle more than 1 billion customer interactions a year. Level AI says its platform processes over 1 billion interactions annually and counts enterprises including Gusto, Chime, Empyrean and VistaPrint among users.
The acquisition will be paid entirely in cash, which means Five9 will not issue stock to Level AI shareholders. The merger agreement specifies that the consideration covers Level AI's outstanding shares, options and warrants, subject to adjustments for cash, debt, transaction expenses and net working capital. The merger would leave Level AI operating as a wholly owned Five9 subsidiary, and either side may call off the agreement if the deal has not closed by February 5, 2027. Neither party is required to pay a termination fee.
Five9 plans to sell Level AI's applications both inside its Genius CX Platform and as standalone products for organizations that use other contact center systems or have not moved to the cloud. "As AI reshapes the customer experience landscape, we believe adding Level AI strengthens our competitive position, expands the customers we can serve, and deepens the AI talent behind our continuous innovation," Five9 Chief Executive Amit Mathradas said. Level AI founder and CEO Ashish Nagar said the deal will allow his company to introduce its applications and AI models built for customer service to thousands more contact centers around the world while maintaining support for current customers.
Five9 announced the deal alongside third-quarter results. Five9's revenue for the three months through September 30, 2026 increased 13% from a year earlier to $323.3 million, while subscription revenue grew 16%. SiliconANGLE reported that Five9 posted adjusted earnings of 82 cents per share, topping the 80-cent consensus, and revenue of $323.3 million against a $318.3 million forecast. The company's forecasts for the fourth quarter and full year do not include any benefit from the pending Level AI acquisition. After the deal was announced, Five9's stock fell more than 23% in late trading.
The companies' partnership dates to 2022, and Level AI's applications are already integrated with Five9 and sold on the Five9 CX Marketplace. According to Crypto Briefing, a native integration has been live since the middle of 2026, letting Level AI's tools connect straight to Five9 for quality assurance, compliance monitoring and guiding agents. Five9 has made AI acquisitions before; it bought Inference Solutions in 2020 to add conversational AI and virtual agent technology. Founded in 2019, Level AI had raised roughly $73 million, so a $325 million cash purchase would return more than four times the capital investors contributed.
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Sam Okafor covers capital markets, public listings and corporate finance for Venturist. He writes from filings, earnings releases and published reporting.