Interactive Intelligence Group Inc (NASDAQ:ININ), which offers cloud and software support for customer engagement, has announced an agreement to be acquired by customer experience company Genesys.
The deal for Genesys to acquire Interactive Intelligence is valued at $1.4 billion. It will have ININ stockholders getting $60.50 per share in cash. This represents a 36% premium over the stock’s closing price on July 28, 2016, which is the day before media started reporting about the company’s interest in a sale.
Genesys is funding the deal with cash on hand and debt financing. The company brings in yearly revenue of $1.3 billion. It has also been increasing research and development spending to close to $200 million per year.
Genesys will be able to become a global leader in the cloud and on-premise solutions for customer engagement, communications and collaboration if it successfully merges with Interactive Intelligence. This will be possible through the two companies’ complementary product portfolios.
Interactive Intelligence is getting legal advice from Faegre Baker Daniels LLP. Its financial advisors for the deal is Union Square Advisors LLC. Genesys is getting legal advice from Fried, Frank, Harris, Shriver & Jacobson LLP. It’s financial advisors are BofA Merrill Lynch, Citi, Goldman Sachs and RBC Capital Markets.
Interactive Intelligence’s Board of Directors and Genesys’ Operating Committee have both unanimously approved of the deal. ININ CEO Dr. Don Brown, who owns 17% of ININ stock, has also agreed to vote in favor of the deal. The deal will still need approval from other shareholders and regulators before it can be completed.
Interactive Intelligence and Genesys are expecting the deal to close by the end of 2016.
ININ stock was up 5% as of Wednesday morning.
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