August 31, 2016
Genesys and Interactive Intelligence (NASDAQ: ININ), two providers of software for call centers, have agreed to merge, with Genesys set to acquire its rival for $60.50 per share in cash as part of a transaction valued at roughly $1.4 billion. That price represents a 36% premium to Interactive Intelligence’s stock price as of July 28, the day before reports surfaced of a possible sale.
The take-private buyout will be supported by Genesys’ group of private equity backers. That includes Hellman & Friedman, which paid about $900 million at a $3.8 billion valuation in July to acquire a “substantial stake” in Genesys. Permira and Technology Crossover Ventures, both of whom have backed Genesys since 2012, retain a majority stake in the business.
The deal continues a busy week in the niche realm of call-center software. Tuesday, KKR agreed to acquire Calabrio, a designer of software meant to improve interactions with callers by analyzing the tone of their voice, among other services. Genesys, meanwhile, offers a customer experience platform, while Interactive Intelligence provides cloud services for customer engagement and communications.
The two transactions are part of a larger trend. So far, this year has seen 376 private equity deals involving companies in the IT services and software sectors, according to the PitchBook Platform, on pace to outstrip the 535 such deals closed in 2015. That runs counter to the private equity industry as a whole, where deal count in just about every industry is down in 2016 compared to last year.