Under the terms of the agreement, Interactive Intelligence shareholders will receive $60.50 per share in cash, representing a premium of 36% to Interactive Intelligence’s unaffected closing stock price on 28 July 2016, the trading day prior to media reports that Interactive Intelligence was considering strategic alternatives, and a premium of 42% to the 30 calendar day average closing price prior to the unaffected closing price on 28 July 2016.
Genesys and Interactive Intelligence have developed capabilities with highly complementary product portfolios that serve adjacent market segments. It's hoped that the combined company will provide the broadest customer experience solutions for organisations of all sizes around the world. As a larger entity with increased scale, Genesys says it is committed to accelerate innovation in the customer experience market, with more than $1.3 billion in revenue and annual R&D spend approaching $200 million. Both cloud and on-premise product portfolios will continue to be supported and offered to the marketplace, with significant R&D investment across the full product portfolio.
“This is a milestone transaction that combines industry-leading expertise and capabilities to enable lasting customer relationships, accelerate innovation and drive growth,” said Paul Segre, chief executive officer, Genesys. “Our combined product portfolio will provide the broadest set of transformative customer experience solutions optimised for customers of all sizes and sophistication levels, available both in the cloud and on-premise. We will significantly invest across the entire Interactive Intelligence product portfolio ... in addition to the rich portfolio of products offered by Genesys today.”
Don Brown, chairman, president and chief executive officer, Interactive Intelligence said, “I am confident that our agreement with Genesys, which follows a careful evaluation of strategic alternatives, provides Interactive Intelligence shareholders with immediate and significant value, and will deliver meaningful benefits to our customers, partners and employees.”
The transaction is expected to close by the end of the year, subject to customary closing conditions, including regulatory approval and approval by Interactive Intelligence shareholders. The transaction has been unanimously approved by Interactive Intelligence’s board of directors and Genesys’ operating committee. Brown, who owns approximately 17% of Interactive Intelligence shares, has agreed to vote his shares in favour of the transaction.
Genesys intends to fund the transaction through a combination of existing cash on hand and debt financing. The transaction is not contingent upon financing, with committed debt financing being provided by Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and RBC Capital Markets.
