Five9 Acquires Artificial Intelligence Firm Lable AI for $325 Million

Nasdaq-listed Five9 has announced the acquisition of artificial intelligence firm Lable AI in an all-cash transaction valued at approximately $325 million. The company's board of directors unanimously approved the agreement, with the acquisition expected to close during 2026, subject to customary closing conditions.

Five9, a provider of cloud contact center solutions, plans to leverage the acquisition to reach organizations that are not currently its customers. Under the strategy, companies will be able to purchase Lable AI's products without migrating to Five9's core system or even moving their customer service operations to the cloud. Additionally, the products will be integrated into the acquiring company's Genius CX platform.

Lable AI operates in the field of customer service artificial intelligence, with clients including Gusto, Chime, Empyrean, and Vistaprint. According to data published by Five9, the acquired company's systems are utilized to handle more than one billion customer interactions annually.

Lable AI's technology is built on a proprietary family of models known as Lable AI Latitude. These models were specifically designed to process customer conversations and serve as the foundation for the applications the company sells to enterprises. Five9 intends to continue offering these applications independently from its own systems rather than solely as part of existing product suites.

This acquisition follows a long-standing business relationship between the two companies. As early as 2022, Lable AI began distributing its applications through Five9's app marketplace, making its products available to company clients prior to the formal buyout agreement. Five9 currently serves more than 4,000 customers, and the transaction will enable it to offer Lable AI's systems as part of its broader service portfolio.

Five9 CEO Amit Mathradas stated that the acquisition of Lable AI will expand the company's artificial intelligence capabilities and add experienced development personnel in the field. Alongside the products themselves, Five9 will also absorb the team that developed the acquired company's technology.

Lable AI founder and CEO Ashish Nagar also commented on the transaction, noting that joining Five9 will bring the company's developed models and applications to thousands of additional customer service centers worldwide. He emphasized that the company will continue to support organizations currently utilizing its products.

Five9 will fund the entire transaction in cash from its existing reserves. The company has not specified an exact closing date beyond the expectation of completion during 2026. The agreement has already been approved by the board of directors, pending regulatory and closing conditions.