The deal is expected to close in a few weeks.

Founded in 2000, VoiceGenie supplies voice self-service solutions, with a software platform based on Voice XML, an open standard used for developing self-service applications by both enterprises and carriers.

Voice XML is a technology that is classically used in contact centres for customer voice self-service; widely deployed by telecom providers to support multimedia services, such as directory assistance, navigation direction and virtual receptionists; and increasingly applied to speech-enabled enterprise applications such as order status, the company says.

Currently headquartered in Toronto with 90 people, VoiceGenie has established itself in the worldwide Voice Portal market, serving some of the largest carriers and ASPs, including Verizon, AT&T, and Orange.

According to recent Garter/Dataquest estimates, VoiceGenie is number two in market share position, with Genesys in number one position.

According to Gartner, the combination of both companies will make Genesys the undisputed leader in a fast-developing market that is expected to double in the next three years, with nearly one-fourth of the market, almost two and a half times the size of its nearest competitor.

Genesys expects to accelerate the trend away from legacy, proprietary IVRs, to new Voice XML software standards. In addition, Genesys will expand its offerings for service providers, allowing them to deploy a wide variety of internal and network services, including managed services.

The increased adoption of speech recognition provides a strong driver for companies to replace aging proprietary IVR systems with standards-based voice portal systems, says Gartner analyst, Drew Kraus.

In addition, vendors announced end-of-life plans for their proprietary IVR systems, causing some companies to accelerate their plans to replace these systems.