Genesys Telecommunications Laboratories Inc, a provider of call center software, said it would buy rival Interactive Intelligence Group Inc for about $1.4 billion.
The $60.50 per share offer is at a 36 percent premium to Interactive’s close on July 28, a day before Reuters reported that Interactive was considering strategic alternatives.
Interactive Intelligence’s software helps call center operators analyze data and improve customer service calls. Its customers include Coca-Cola Co and Sony Corp.
Genesys, whose customers include online payment processor PayPal Holdings Inc and Red Hat Inc, intends to fund the deal through a combination of cash on hand and debt.
Reuters reported in August that Genesys was in talks to buy the contact center business that its peer Avaya Inc is hoping to sell for more than $4 billion.
Bank of America Merill Lynch, Citi, Goldman Sachs and RBC Capital Markets were financial advisers to Genesys, while Fried, Frank, Harris, Shriver & Jacobson LLP is its legal adviser.
Union Square Advisors LLC is the financial adviser to Interactive Intelligence and Faegre Baker Daniels LLP is its legal adviser.