Genesys in Early Talks with Potential Buyers

Genesys Telecommunications Laboratories Inc. is in talks with potential buyers for a deal that could value the call-center software provider at more than $3.5 billion including debt.

The talks, with private-equity firms and other technology companies, are at an early stage, according to people familiar with the matter. They may not lead to a deal.

"Like any fast-growing company, we receive indications of interest from time to time," a Genesys spokesman said. He declined to comment further on the matter.

Genesys software helps orchestrate more than 100 million digital and voice interactions daily for customers including AT&T Inc. and Citigroup Inc. Private-equity firm Permira acquired a controlling stake in Daly City, Calif.-based Genesys in February 2012 from telecommunications-equipment maker Alcatel-Lucent SA. That deal valued Genesys at $1.5 billion.

Genesys has since made several smaller acquisitions, including that of Echopass Corp., a provider of cloud-based contact products and services, according to S&P Capital IQ.

In February, Genesys said it had revenue of $850 million in 2014, a 15% increase from the prior year, driven by demand for its cloud products.

Private-equity firms have recently stepped up their buying and selling of software companies, which are able to take on relatively high levels of debt due to the recurring nature of their cash flows. Last month, Permira agreed to purchase data-software maker Informatica Corp. in the year's largest buyout so far, while Vista Equity Partners agreed to sell a controlling stake in security-software company Websense Inc. to Raytheon Co. A month earlier, Bain Capital LLC agreed to buy security-software company Blue Coat Systems Inc. from fellow private-equity firm Thoma Bravo LLC.

Write to Gillian Tan at [e-mail] and Dana Cimilluca at [e-mail]

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