Earlier this month, Bloomberg broke the news that Genesys plans to become an initial public offering (IPO).
If this is the case, Genesys will pivot from a private to a public company.
Bloomberg suggested that the CCaaS provider is working with several partners – including Goldman Sachs, Citigroup, and JPMorgan Chase & Co. – to make that shift by 2025.
Upon becoming an IPO, Genesys will be able to issue shares to investors – available on a stock exchange – and raise greater capital.
Indeed, Bloomberg’s sources – who were not authorized to publicly speak on the matter – believe that Genesys could raise up to $2BN in the IPO.
That funding injection is a significant advantage of spinning into an IPO. However, there are others – alongside some disadvantages – to consider.
The Backdrop
Genesys hasn’t been an IPO since 1999 when Alcatel-Lucent bought the business for $1.5BN.
In 2012, Permira Funds purchased Genesys for the same price, taking the company private.
It has stayed that way ever since, while most of its emerging rivals in the CCaaS space – including AWS, Five9, and NICE – have remained public.
However, since 2012, the value of Genesys has surged. Fast-forward to December 2021, and a funding round led by Salesforce Ventures valued the business at $21BN.
A year later, Reuters reported that Genesys planned to spin into an IPO, reportedly working with Goldman Sachs, Citigroup, and JPMorgan Chase & Co. back then, too.
Now, after two years, the contact center tech juggernaut appears to have dusted off those plans. But that begs two key questions: why now, and so what?
Why Now, and So What?
As suggested, becoming an IPO will help Genesys raise capital, which it can use not only to support its daily operations but also to fund R&D and new growth opportunities.
By freeing up that cash now – at a time when contact center AI is in demand, and its CCaaS-CRM co-innovation strategy is gaining momentum – Genesys may bolster its already strong market position.
Additionally, that extra cash could enable acquisitions that will help Genesys stretch the definition of what it can offer as a CCaaS provider.