Ada sells to Dialpad for $430M in stock, but no one gets cash

Ada, a Toronto company that makes AI customer service software, has agreed to merge with U.S. company Dialpad in a deal reported at about US$430 million. No one gets cash. Ada's investors, founders and employees swap their Ada shares for Dialpad shares, and both companies are private.

What changed

Ada was once valued at $1.2 billion. The new price is about US$430 million, or around C$600 million, according to two sources. Other terms were not disclosed. That includes the exchange ratio, which decides how many Dialpad shares Ada holders receive.

The same week, Salesforce agreed to buy Cresta for a reported $2.7 billion. Salesforce stock trades publicly, so Cresta's investors can sell what they get. Five9 also agreed to pay $325 million in cash for Level AI.

Why the price is soft

In a stock deal between two private companies, both sides agree on what each is worth. No outside buyer checks either number. Dialpad's last priced value is $2.2 billion, set in a $170 million round in December 2021. If that figure holds, Ada holders would own roughly 16% of the combined company.

The combined company reports $470 million or more in annual recurring revenue (yearly subscription income). That figure is unaudited and as of July 31, 2026. For $430 million to hold, the company must be worth about 5.6 times that. RingCentral trades around 3 times revenue. At that level, Ada's stake would be worth about $230 million, roughly half the headline. These figures only show how far the answer can move.

Who it affects

• Ada's investors now hold Dialpad stock they cannot easily sell, so their own backers get no cash back.
• Founders and employees hold common shares, which are paid last if Dialpad later sells or goes public.
• Ada has about 200 employees and roughly $50 million in yearly revenue. It cut half its marketing team in July and laid off 25 more.

Why Ada took the deal

The reporting suggests Ada needed it. On its own, a new funding round would probably have come in well below $430 million, if Ada could raise at all. In the merged company, Dialpad CEO Craig Walker stays CEO and Ada CEO Mike Murchison becomes Chief AI Officer. Dialpad launched a platform for AI voice and text agents in October 2025, and Ada's agents fit into it.

What happens next

The real value gets set only when Dialpad raises a priced round, goes public or sells. Until then, Ada's shareholders hold paper value and must wait for an exit.