8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 29, 2011

Pegasystems Inc.

(Exact name of registrant as specified in its charter)

Commission File Number: 1-11859

Massachusetts	04-2787865
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

101 Main Street, Cambridge, Massachusetts 02142

(Address of principal executive offices, including zip code)

617-374-9600

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01. Entry into a Material Definitive Agreement

On June 29, 2011, Pegasystems Inc. (“we” or the “Company”) entered into two new lease agreements with Charles Park One, LLC and Charles Park Two, LLC to lease certain premises used for the Company’s office headquarters in Cambridge, Massachusetts (the “New Leases”). Under the New Leases, the Company will lease two adjoining buildings located at One Charles Park and One Rogers Street, for a total of 162,854 square feet. The New Leases have staggered commencement dates, the first of which is July 1, 2011, but both terminate on December 31, 2023, subject to two 5-year extension options.

The Company’s current lease for the premises at 101 Main Street, Cambridge, Massachusetts (the “Existing Lease”) is scheduled to expire on May 31, 2013. The Company will continue to pay its monthly rent through the remaining term period. The total rents under the New Leases equal $89,543,000 over the term of the New Leases. The New Leases provide the Company with free rent for the remaining term of the Existing Lease, for the same amount of space covered by the Existing Lease. The Company is also receiving allowances for tenant improvements under the New Leases.

Item 9.01. Financial Statements and Exhibits

99.1 Lease dated June 29, 2011 between Charles Park One, LLC and Pegasystems Inc. for premises at One Charles Park.

99.2 Lease dated June 29, 2011 between Charles Park Two, LLC and Pegasystems Inc. for premises at One Rogers Street.

99.3 Press Release dated July 5, 2011 announcing New Lease signing.

Signature(s)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Pegasystems Inc.
Date: July 5, 2011	By:	/s/ Shawn Hoyt
		Shawn Hoyt General Counsel and Secretary

Exhibit Index

Exhibit No.	Description
99.1	Lease dated June 29, 2011 between Charles Park One, LLC and Pegasystems Inc. for premises at One Charles Park.
99.2	Lease dated June 29, 2011 between Charles Park Two, LLC and Pegasystems Inc. for premises at One Rogers Street.
99.3	Press Release dated July 5, 2011 announcing New Lease signing.

EX-99.3

Exhibit 99.3

Pegasystems Signs Lease for Expanded Corporate Headquarters in Cambridge, Massachusetts

Continued record growth fuels move to more spacious, state-of-the-art location

CAMBRIDGE, Mass. – July 5, 2011 – Pegasystems Inc. (NASDAQ: PEGA), the leader in Business Process Management (BPM) and software for customer centricity, today announced that it has signed a lease to move its corporate headquarters to an office complex at One Rogers Street and One Charles Park in Cambridge, Massachusetts. Relocation to the new office facility is expected to begin later this year.

Pegasystems is currently ranked as the third “Fastest-Growing Company” in the Technology category by Fortune Magazine¹. The new location will provide space for an increasing Cambridge-based workforce, as well as expanded training facilities. This new office will initially represent a 40 percent increase in space for Pegasystems, compared to its current corporate headquarters.

The new Cambridge headquarters facility is the latest in a series of new offices that Pegasystems has opened recently as part of its continued growth, including new regional facilities in the United Kingdom, India, Japan, and the Netherlands.

Quotes & Commentary:

“We have been committed to Cambridge throughout our 28 year history, and find it a tremendous place to build a team with the sophistication demanded by our clients,” said Alan Trefler, Founder and CEO of Pegasystems. “We’ve been growing revenue at about 30 percent a year for the last five years with a parallel growth in employees. This new facility will enable us to accommodate continued growth, while providing our staff with a state-of-the-art, collaborative and dynamic environment.”

“Many local organizations have downsized or relocated in recent years while Pegasystems has experienced substantial growth in Cambridge,” said Jeff Yanagi, senior vice president of human resources at Pegasystems. “We have more than doubled our staff over recent years, and our plans are to continue an aggressive growth trajectory. We currently have 290 positions open globally. Many candidates are recognizing that training in Pega technology and joining the Pega family can propel their careers. We are excited about our new office facility, as it provides a desirable location with adequate parking and convenient access to many public transit options. In addition, there are many other nearby amenities such as day care, shopping, and restaurants, as well as parks and walking trails.”

“We are proud to welcome a fast-growing, high performing company like Pegasystems as a tenant,” said John Carrick, assistant managing director – northeast region for Principal Real Estate Investors, the property owner. “These world-class facilities offer a unique match for the needs of Pega’s world headquarters. We’re confident this valuable partnership has long-term potential, and we look forward to helping support the impressive growth of Pega for years to come.”

¹ Fortune Magazine, September 2010

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About Pegasystems

Pegasystems, the leader in business process management and software for customer centricity, helps organizations enhance customer loyalty, generate new business, and improve productivity. Our patented Build for Change^® technology speeds the delivery of critical business solutions by directly capturing business objectives and eliminating manual programming. Pegasystems enables clients to quickly adapt to changing

business conditions in order to outperform the competition. For more information, please visit us at www.pega.com.

Press Contacts:
Brian Callahan	Kim Baker
Pegasystems Inc.	PAN Communications
brian.callahan@pega.com	pega@pancomm.com
(617) 866-6364	(617) 502-4300
Twitter: @pegasystems

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