Genesys Telecommunications Laboratories Inc., the maker of call-center software, has agreed to buy Interactive Intelligence Group Inc. (Nasdaq: ININ) in a deal valued at about $1.4 billion.

Genesys will pay Interactive Intelligence holders $60.50 a share in cash, the companies said in a statement. That represents a 36 percent premium to Interactive Intelligence’s price on July 28, before media reported that the company was exploring strategic alternatives, the companies said.

Interactive Intelligence is based in Indianapolis, Indiana, and sells cloud-based software designed to help call centers improve the customer experience. The deal will let Daly City, California-based Genesys expand its own offerings.

Data center deals have been picking up in the middle market. Equinix Inc. (Nasdaq: EQIX) is adding Bit-isle Inc.; Fusion Telecommunications International Inc. (Nasdaq: FSNN) agreed to add Technology for Business Corp; and Intel Corp. (Nasdaq: INTC) said it will buy Nervana Systems;

Genesys, which received a $900 million investment in July from private equity firm Hellman & Friedman, is looking to use the recent infusion to expand its business, people familiar with the matter said this month. The company also is considering acquiring Avaya Inc.’s call centers, one of the people said at the time.

The deal, which is expected to close by the end of 2016, is being funded through a combination of cash and debt financing, provided by Bank of America Corp., Citigroup Inc. (NYSE: C), Goldman Sachs Group Inc. (NYSE: GS) and Royal Bank of Canada, the companies said in the statement. Those banks are also serving as financial advisers to Genesys. Union Square Advisors LLC advised Interactive Intelligence.

--Additional reporting by Mergers & Acquisitions' Demitri Diakantonis

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