Salesforce and ServiceNow Invest $1.5 Billion in Genesys to Boost Customer Experience

Salesforce and ServiceNow are investing $1.5 billion in Genesys, a contact center software provider, to strengthen their integration and expand AI capabilities. Genesys plans to use the funds to repurchase shares, enhance customer experiences, and anticipate customer needs. This partnership signals a push toward unified CRM and CCaaS platforms, with ServiceNow stock carrying a Strong Buy rating and Salesforce a Moderate Buy rating.

In a significant investment move, Salesforce and ServiceNow have committed $1.5 billion to Genesys, a leading contact center software provider. This investment will be used to repurchase shares from existing equity holders, with Hellman & Friedman and Permira remaining the majority shareholders [1].

The investment underscores the strategic importance of Genesys as a customer experience (CX) orchestration platform, further cementing its global partnerships with Salesforce and ServiceNow. The Genesys Cloud platform has demonstrated robust growth, reaching nearly $2.1 billion in annual recurring revenue (ARR) during the first quarter of the company’s fiscal year 2026, representing a 35% year-over-year increase. Additionally, the platform has shown strong net revenue retention (NRR) of over 120% for the last four fiscal quarters [1].

The funds will facilitate the integration of AI capabilities across multiple channels, from voice to digital, enhancing customer experiences and driving operational efficiencies. Salesforce and ServiceNow, both industry leaders, are excited about the opportunity to further integrate their products with Genesys, supporting their joint customers in transforming their contact centers and customer experiences [1].

The contact center market has been experiencing growth, with notable acquisitions such as Nice acquiring Cognigy for nearly $1 billion. Genesys competes with other market players like Five9, Zoom, Amazon Connect, and Microsoft Dynamics Contact Center. Five9 recently reported second quarter revenue of $283.3 million, up 12% from a year ago, with net income of $1.2 million. The company projected 2025 revenue between $1.1435 billion to $1.1495 billion [2].

The investment is expected to close by the end of Genesys’ fiscal year 2026, subject to customary closing conditions. Goldman Sachs and J.P. Morgan Securities LLC served as financial advisors, while Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel [1].

References:
[1] https://www.genesys.com/company/newsroom/announcements/genesys-announces-1-5-billion-investment-by-salesforce-and-servicenow
[2] https://www.constellationr.com/blog-news/insights/servicenow-salesforce-invest-15-billion-genesys-five9-ceo-retires