2016 is proving to be an interesting year for the cloud communications space with the number of mergers, acquisitions, and deals sweeping through the sector like wildfire.
This year alone saw the merger of Polycom with Siris Capital Group instead of its previously announced deal with Mitel. Vonage acquired Nexmo as a move accelerate the company's growth. News of GoDaddy entering the voice communications space also echoed throughout the industry with its acquisition of FreedomVoice. Broadsoft expanded its portfolio with its purchase of Intellinote, and CenturyLink announced its acquisition of Level 3 Communications.
And just as market watchers thought the consolidation dust had finally settled, the market was shaken once again as customer experience and cloud contact center giant Genesys announced earlier this month that it had completed its acquisition of industry rival Interactive Intelligence.
What We Know So Far
The merger (which has been highly talked about since August of this year), is valued at approximately $1.4 billion. Following the terms of the agreement, shareholders of Interactive Intelligence received $60.50 per share in cash for each share of common stock they held at closing. And as of December 1, 2016 (or since the completion of the deal), Interactive Intelligence is no longer a publicly traded company and is now a part of the Genesys brand. Paul Segre will continue to serve as the CEO of Genesys, with the company’s headquarters still maintained in Daly City, California.
Segre had this to say about the acquisition:
"With this announcement, Genesys ushers in a new era in customer experience. The combination of Genesys and Interactive Intelligence creates the largest innovation leader purely focused on delivering exceptional customer experiences. We're pleased to welcome the Interactive Intelligence team."
Tom Eggemeier, president of Genesys, also expressed his confidence in the deal: “We're excited about accelerating our mission to be an iconic company for our employees and customers. This combination propels Genesys into the next era as a top-50 employer with an industry-leading net promoter score, which is a key measure of customer satisfaction. We'll continue to offer, support and invest in best-in-class solutions, including PureCloud®, Communications as a Service℠ (CaaS) and Customer Interaction Center™ (CIC), in addition to our core Genesys products."
When Two Formidable Forces Combine
While we still need to wait and see exactly how this transaction will play out and what the combined companies have in store for customers, it’s safe to say that much can be expected from this new team-up. Experts predict a bigger, stronger brand that offers a complete customer engagement and contact center technology portfolio which caters to all market segments. This could mean bringing together Interactive Intelligence’s out of the box solutions for smaller businesses and Genesys’ custom products tailored towards the enterprise market.
The combination of the two providers also means they are now able to support a larger network of over 10,000 customers spanning more than 100 countries, all of which power over 25 billion customer interactions per year.
In Segre’s letter to Genesys’ customers and partners, he affirms that they plan to “leverage the best of both companies to improve and cross-pollinate technology and go-to-market strengths.” This means that customers can expect an “accelerated innovation resulting in the highest return on investment and solutions” that fit their unique needs.
Segre also announced that in 2017, Genesys will be launching CX17, the industry’s newest customer experience event. The event is expected to feature various learning opportunities about the combined companies’ roadmaps and plans, as well as different sessions, discussions, demos, and technology.
In the coming months, it will be interesting to see what Genesys will bring to the table. But with its bigger network, new technologies, and tools, the new Genesys is indeed positioning itself to become a force to be reckoned with in the customer engagement and contact center markets.
Genesys is an industry-leading provider of omnichannel customer experience and contact center solutions. Their solutions are designed to help businesses manage their customer interactions efficiently, improving customer satisfaction and maximizing revenue and loyalty. Trusted by more than 10,000 companies in over 100 countries, Genesys continues to innovate to deliver exceptional customer engagement solutions, both in the cloud and on-premise.