Call center software maker Genesys Telecommunications is buying rival firm Interactive Intelligence Group for roughly $1.4 billion.
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Under the terms of the transaction, Interactive shareholders will receive $60.50 per share in cash, which represents a premium of about 36% to the unaffected closing price on 28 July, the last trading day before media reports that Interactive was considering strategic alternatives.
The target company sells cloud-based software, created to help call centers improve their customer experience.
ININ shares were up almost 6% at $59.94 apiece following a prior run to their best price since March 2014 at $60.10 a share.
“The combination of Genesys and Interactive Intelligence provides a complete portfolio to address all market segments by combining Interactive Intelligence’s PureCloud, Cloud Communications-as-a-Service (CaaS), and Customer Interaction Center (CIC) with Genesys’ offerings”, Interactive Intelligence CEO Don Brown said in a company statement.
Genesys said the two offer complementary product portfolios, and the combined group will be able to deliver customer service over any channel, in the cloud and on-premise, to businesses of any scale.
The company’s strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations.
Union Square Advisors LLC is the financial adviser to Interactive Intelligence and Faegre Baker Daniels LLP is its legal adviser. Genesys is getting legal advice from Fried, Frank, Harris, Shriver & Jacobson LLP.
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Interactive Intelligence’s Board of Directors and Genesys’ Operating Committee have both unanimously approved of the deal.
