Toku, a Singapore-based provider of enterprise-grade cloud communications and customer experience (CX) solutions, has on Tuesday announced the intent to acquire AiChat, a Singapore-based artificial intelligence (AI)-powered conversational customer experience (CX) platform.

Upon completion, the acquisition will strengthen Toku’s position as a full-service CX technology firm and enable the company to fulfil its vision of delivering seamless, personalized customer engagement across all channels, Toku said in a statement.

Financial terms of the acquisition, however, were not disclosed.

The transaction is expected to close by the third quarter 2024.

Through this acquisition, Toku said it will gain AiChat’s industry-leading chatbot and messaging capabilities.

When combined with Toku’s existing voice, messaging, and cloud communications suite, it said customers will benefit from a single, integrated platform to power their entire CX journey.

The expanded capabilities and synergies between the two companies are expected to unlock an estimated 50 percent revenue growth within the first twelve months, according to the statement.

“The acquisition of AiChat is a natural next step in our mission to be Asia Pacific’s leading customer experience platform,” said Thomas Laboulle, Founder and Chief Executive Officer of Toku.

“Both companies share a vision of using AI to enhance customer interactions and improve contact center operations,

“Together, we can deliver even more value to our customers through a unified set of omnichannel solutions,” he added.

Brendon Blacker, Managing Partner of Delivery Hero Ventures, commented, that as a major strategic investor in Toku, they enthusiastically welcome the acquisition of AiChat.

“This move is a strategic enhancement to Toku’s portfolio, positioning it as an innovator in the region’s CX industry,

“AiChat’s expertise in conversational AI and regional insights, combined with Toku’s advanced cloud contact centre solutions, effectively amplifies their unique competitive advantages, and signals a deliberate step towards expanding and solidifying their leadership in the market,” he added.

According to the statement, enterprises traditionally face challenges providing unified customer experiences, as they operate across multiple markets and business units with specialized point solutions that are not well-integrated.

This can lead to data silos and an inability to leverage insights across the full customer journey.

By coming together, Toku and AiChat will offer enterprise clients a single view of their customers with insights drawn from conversations across all channels, faster resolution of issues through seamless hand-offs between chat, voice, and other channels, and more personalized experiences tailored to individual customers at every step of their journey.

“Toku’s commitment to CX excellence mirrors our values, making this acquisition a strategic and natural alignment,” said Kester Poh, Founder and Chief Executive Officer of AiChat.

According to him, this partnership is a key milestone for the firm, revealing significant opportunities for synergy and growth as leading CX providers in Asia Pacific (APAC).

“Together, we aim to simplify customer operations, offering a unified platform for efficient and effective customer experience management,” he added.

In addition to integrating into Toku’s solutions, Toku said AiChat will continue to operate as a standalone product for customers who prefer a single streamlined solution that delivers the best-in-class AI-powered conversational experience.

It is noted that the acquisition of AiChat will mark Toku’s second merger and acquisition (M&A) activity in two consecutive years.

In April 2023, Toku acquired customer engagement firm Activeo Singapore, bolstering its capabilities with strategic consulting expertise and large-scale enterprise project delivery.

According to the statement, AiChat employees will begin moving into Toku’s offices as part of the integration, bringing the company’s total strength to 160 dedicated CX professionals.

Similar to last year’s acquisition of Activeo, no staff redundancies are expected from the acquisition, and both companies are on a path to profitability and expect to tap into each other’s complementary strengths and talents to accelerate growth post-acquisition.

It is noted that AiChat currently serves a variety of customers in multiple verticals across Southeast Asia including Bayer, M1, Marina Bay Sands, Petron, Thomson Medical and UPS.

Toku acquires customer engagement firm Activeo Singapore to boost APAC businesses