Contact centre company Genesys to buy Interactive Intelligence

By Rishika Sadam

(Reuters) - Contact centre company Genesys agreed to buy Interactive Intelligence Group Inc for about $1.4 billion as it looks to build scale in the face of fierce competition in the telecommunications software and equipment industry.

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 the company was considering strategic alternatives.

Shares of Interactive Intelligence were up 5.25 percent in thin premarket trading on Wednesday.

Interactive Intelligence provides software that helps call centre operators analyse data and improve customer service calls and counts Coca-Cola Co, Sony Corp and Kohl's Corp as some of its major customers.

Reuters had reported in July that Interactive was working with boutique investment bank Union Square Advisors LLC on a sale process that had attracted other telecommunications software companies, as well as private equity firms.

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.

The Daly City, California-based company is also in talks to buy the contact centre business that its peer Avaya Inc is hoping to sell for more than $4 billion, Reuters had reported earlier this month.

Genesys received $900 million in investment last month from private equity firm Hellman & Friedman LLC, valuing the company at $3.8 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.

Faegre Baker Daniels LLP is Interactive's legal adviser.

(Reporting by Rishika Sadam in Bengaluru; Editing by Anil D'Silva)