Genesys Telecommunications Laboratories, a provider of call center software, said it would buy rival Interactive Intelligence Group for about $1.4 billion.
The $60.50 per share offer is at a 36% premium to Interactive’s close on July 28, a day before Reuters reported that Interactive was considering strategic alternatives.
Genesys, whose customers include online payment processor PayPal and Red Hat, intends to fund the deal through a combination of cash on hand and debt.
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Reuters reported in July that Genesys was in talks to buy the contact center business that its peer Avaya is hoping to sell for more than $4 billion.
Union Square Advisors LLC is the financial adviser to Interactive Intelligence and Faegre Baker Daniels LLP is its legal adviser.