PEGA Pegasystems Inc. - Common Stock

Pegasystems Inc. (Pega) is a global software company based in Waltham, Massachusetts, in the United States, and founded in 1983. The company has been publicly traded since 1996 as PEGA (NASDAQ). Pega is a low-code platform for workflow automation and generative AI-powered decision-making for businesses.

History

Early history

Alan Trefler founded Pegasystems in 1983 at the age of 27 in Cambridge, Massachusetts. Prior to founding the company, in the early 1980s, Trefler had developed computer systems that could play chess. During the company's early years, it focused on providing case management, namely for companies such as American Express. The company went public in 1996 with initial and secondary public offerings, and began trading on NASDAQ under the symbol PEGA.

2010–2019

In March 2010, Pegasystems acquired the enterprise software company Chordiant for around $161.5 million. The acquisition expanded Pegasystems into online training, telecommunications, and healthcare, integrating Chordiant’s CRM technology into its operations. Pega Cloud was introduced using Amazon Web Services in 2012, and in October 2013, Pegasystems acquired the mobile application developer (based in Kraków and Bangalore) Antenna Software for $27.7 million.

In 2014, Pegasystems invested in network operations in North America and India to support its cloud services. In that same year, Pegasystems acquired MeshLabs, a Bangalore-based text mining startup, and Firefly, a co-browsing tool.

As of February 2015, the company had active partnerships with IT outsourcing companies such as Hexaware, NIIT Incessant Technologies, Tata Consultancy Services, Infosys, Wipro, HCL Technologies, Accenture, and Cognizant. Between 2005 and 2015, Pegasystems had an average sales growth of 21% per year. The company Pegasystems acquired OpenSpan Inc., an Atlanta-based company specializing in robotic process automation and workforce analytics software.

In 2019, Pegasystems purchased Infruid Labs, a business analytics and data visualization software company, as well as In The Chat, a digital messaging platform.

2020–present

In April 2020, during the COVID-19 pandemic, Pegasystems launched an application for financial institutions to manage emergency loan applications from small businesses seeking COVID-19 financial relief. Throughout 2020, Pegasystems helped several of its clients, including the Bavarian government and the Commonwealth Bank of Australia, develop apps to manage issues that arose because of COVID-19.

In May 2020, Pegasystems sponsored a Dropkick Murphys benefit concert at Fenway Park, featuring a virtual appearance by Bruce Springsteen. The live-streamed event raised over $700,000 for COVID relief and supported Habitat for Humanity, Feeding America, and the Boston Resiliency Fund.

In January 2021, the company announced it had acquired Qurious.io, a cloud service that analyzes voice calls in real time to support customer service representatives. This led to Pega’s Voice AI and Messaging AI that analyzes live customer service conversations in real time to help service agents resolve service requests with reduced manual effort.

In 2021, Pegasystems moved its headquarters to Waltham, Massachusetts, became the official Ryder Cup supplier, and sponsored golfers Marc Leishman and Mel Reid, with Reid notably wearing the company’s Pride logo in competition.

In May 2022, a jury verdict awarded Appian Corporation $2.036 billion in damages for trade secret misappropriation and a damages award of $1 for a violation of the Virginia Computer Crimes Act. The company was not required to begin paying the judgment until all avenues of appeal were exhausted. In February 2023, Pega filed an appeal asking the court to overturn the previous judgment and either rule in Pega’s favor or order a new trial. In July 2024, the Court of Appeals of Virginia reversed the verdict and the multi-billion dollar damages award and ordered a new trial.

In 2022, Pegasystems acquired Everflow, a Brazilian process mining company to support their process mining and hyper automation goals.

In 2024, Pega expanded its GenAI capabilities to integrate with Large Language Models (LLMs) from Amazon Web Services (AWS) and Google Cloud.

Products and services

Pega Infinity

Pega Infinity ‘25 was released in 2025 as the latest version of the Pega Infinity portfolio. It keeps AI, low-code, and automation features to Pega products, including Pega Cloud, Pega Platform, Pega Customer Decision Hub, Pega Customer Service, and Pega Sales Automation. The portfolio uses Constellation UX, a case management tool.

Pega Platform

The company's core software product is the Pega Platform, part of its Pega Infinity portfolio of applications for customer engagement and digital process automation, designed to connect customer interfaces with back-end process automation. Its applications are certified to work on Google Cloud and other public cloud platforms, including Microsoft Azure, Amazon Web Services, and Pivotal’s Cloud Foundry. Various Kubernetes environments are supported.

Legacy Transformation

Pega’s legacy transformation services, centered on its Blueprint product, use AI technology to help enterprises modernize aging IT systems and other workflows. Blueprint will analyze existing legacy assets, such as codebases, PDFs, and screen recordings, and automatically create a blueprint for a reimagined, modernized cloud-native application.

Pega GenAI

In 2023, Pega GenAI, a set of 20 generative AI boosters were integrated across Pega’s portfolio of products, Pega Infinity. By the end of the year, Pegasystems generated $1.4 billion in sales. Pegasystems’ GenAI tools are compatible with AWS and Google Cloud’s large language models (LLMs). They include:

Knowledge Buddy, a generative AI-powered assistant that helps users find answers to questions using enterprise knowledge bases. Responses show attributed source content.

Socrates, an AI-powered tutor that teaches clients and partners how to better utilize Pega software. It is named after the Socratic Method and, like that method, uses open-ended questions to teach, rather than feeding students information. The AI agent works in a number of languages.

Pega Blueprint

Pega Blueprint is an AI agent and design-as-a-service tool that optimizes application workflow design using generative AI. Users provide a description of an application’s purpose to the agent, and it then lays out a blueprint for the app using the same structure that Pega would use to build it. Intellectual property and industry knowledge are integrated into the process. Users can push created blueprints onto Pega’s Infinity platform or Launchpad. Blueprint will automatically generate most of the necessary backend integration, and will flag any further required work. If a company wants to use another platform to build the final application, the Pega-created blueprint can be printed as a PDF and shared with developers.

A virtual example is provided for each blueprint, giving employees a preview of what the new application will look like across multiple devices. Before the new design goes live, human employees must validate and approve all workflows.

Blueprint will also take legacy artifacts, such as old PDFs or screen recordings, and use its AI capabilities to analyze the data, summarize it, and then redesign it as a modern cloud-native process. Users are given a preview of what the reimagined application will look like, and working prototypes include both the business workflow and customer interactions.

Over 150,000 blueprints have been created using the tool since it went live in April 2024. At its 2025 Pegaworld event, Pega highlighted how the AI agent can accelerate workflow design from months to weeks, overcoming obstacles such as outdated systems and technical debt.

AI Governance

To keep AI agents in check, Blueprint uses a workflow model instead of a prompt model. Developers, rather than end users, can use prompts, documentation, descriptions of automation goals, source code, and even videos of RPA to build workflow apps. The workflows provide boundaries, prescribing exactly how agents should act when utilized. This model separates AI reasoning during the design period from AI execution during run time.

Agentic Process Fabric

The Agentic Process Fabric (originally Process Fabric) is designed to manage and govern AI agents across various systems and tasks, and enables agents, apps, systems, and data to work together. It works with design, conversation, automation, and optimization agents. After registering each agent, workflow, and dataset, Agentic Process Fabric can then select the most appropriate one for each task depending on available data and a customer’s or employee’s needs. To prevent problems, Agentic Process Fabric binds agents to pre-defined workflows, assigned tasks, and service level agreements (SLAs). Agents can also be audited for compliance if necessary.

Clients and projects

Pegasystems provides services in the fields of financial services, insurance, life sciences, healthcare, government, manufacturing, high tech, communications and media, energy, and utilities. Pega clients include ING, Lloyds Banking Group, BAA, the state of Maine, PayPal, Cisco Systems, Philips, and BNY Mellon, Verizon, Aflac, Bupa, Centrica, Coca-Cola, Commonwealth Bank of Australia, Ford, HCA Healthcare, JP Morgan, Shawbrook Bank, and Citi.