Call center solutions provider Genesys, owned by private equity firms Permira, Technology Crossover Ventures (TCV) and Hellman & Friedman, agreed to acquire Indianapolis, Indiana-based rival Interactive Intelligence Group Inc. (NASDAQ: ININ) for $60.50 per share in cash, implying a deal value of $1.4 billion.

The price represents a premium of 36% to the stock’s price on July 28, 2016, the day prior to media reports that Interactive Intelligence was considering strategic alternatives.

Genesys, headquartered in Daly City, south of San Francisco, Calif., is a world leading customer experience platform, with over 4,700 customers in 120 countries.

On July 21, 2016, Genesys said it raised a $900 million investment from private equity firm Hellman & Friedman at a $3.8 billion valuation. The Permira funds, along with TCV, which acquired Genesys from Alcatel-Lucent (EN: ALU) for $1.5 billion in February 2012, continue to own a majority stake in the company.

“Permira has been a tremendous partner over the past four years, and Hellman & Friedman’s investment in Genesys is further validation of both our strategy and execution. This investment will help accelerate our growth,” Paul Segre, chief executive of Genesys, said last month.

Commenting on the acquisition of Interactive Intelligence, Segre now said, “This is a milestone transaction that combines industry-leading expertise and capabilities to enable lasting customer relationships, accelerate innovation and drive growth.”

“Our combined product portfolio will provide the broadest set of transformative customer experience solutions optimized for customers of all sizes and sophistication levels, available both in the cloud and on-premise,” he added.

Interactive Intelligence is a global leader of cloud services for customer engagement, communications and collaboration backed by over 150- pending patent applications, and more than 6,000 global customer deployments, with more than 2,000 employees worldwide.

“The combination of Genesys and Interactive Intelligence provides a complete portfolio to address all market segments by combining Interactive Intelligence’s PureCloud, Cloud Communications-as-a-Service (CaaS), and Customer Interaction Center (CIC) with Genesys’ offerings,” said Don Brown, chairman, president and chief executive of Interactive Intelligence,

In a sign of ongoing industry consolidation, the news comes only a day after New Yor-based global private equity firm KKR & Co. (NYSE: KKR) said it agreed to acquire fast-growing call-center software company Calabrio, based in Minneapolis, and a week after French call-center outsourcing company Teleperformance SA (EPA: RCF) agreed to acquire LanguageLine Solutions LLC from private equity firm ABRY Partners and minority equity owners, for $1.52 billion.

Last month, Citrix Systems Inc. (NASDAQ: CTXS) agreed to merge its GoTo collaborative communications business with LogMeIn Inc. (NASDAQ: LOGM) in a deal valued at $1.8 billion.

In May, Santa Clara, Calif.-based rival Avaya, a portfolio company of private equity firms Silver Lake and TPG Capital, engaged Goldman Sachs and Centerview Partners to explore a possible sale of the company. Avaya was originally spun off Lucent Technologies.

A few days earlier, Israeli enterprise software solutions provider NICE Systems (NASDAQ: NICE) agreed to acquire Salt Lake City, Utah-based inContact Inc. (NASDAQ: SAAS), a leading provider of cloud contact center software, for $940 million.

Other competitors and companies in related fields include Cisco (NASDAQ: CSCO), RingCentral (NYSE: RNG), ShoreTel (NASDAQ: SHOR), and private equity-backed Aspect Software.

Both Genesys and Interactive Intelligence have developed best-in-class capabilities according to Gartner and other industry analysts. The combined company is expected to provide broader customer experience solutions for organizations of all sizes around the world.

As a larger entity with increased scale, Genesys said 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.

The deal is expected to close by the end of the year, subject to customary closing conditions, including regulatory approval and approval by Interactive shareholders. The deal has been unanimously approved by the two boards of directors. Brown, who owns approximately 17% of Interactive shares, has agreed to vote his shares in favor of the transaction.

Genesys intends to fund the transaction through a combination of existing cash on hand and committed debt financing to be provided by Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs and RBC Capital Markets, which are serving as financial advisors to Genesys. Fried, Frank, Harris, Shriver & Jacobson LLP is serving as legal advisor to Genesys. Union Square Advisors LLC is serving as exclusive financial advisor to Interactive Intelligence, and Faegre Baker Daniels LLP is serving as legal advisor.

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