Officials with the networking and communications vendor are concerned about a lukewarm response if it launches its $1 billion IPO around the same time as Facebook.
executives may wait until later this year or 2013 before kicking off its
initial public offering to keep from being lost in the expected tidal wave of
more anticipated IPOs this year from the likes of Facebook and Palo Alto
Networks, according to reports.
and communications technology vendor filed for a $1 billion IPO last year,
aiming to launch it sometime in the first half of 2012. But the combination of
such factors as the struggling economic picture and Facebook preparing for its
own $5 billion IPOwhich would be the largest in tech industrys historyhad
Avaya executives worried that investors would be less likely to take a look at
their stock, according to reports by Reuters and BloombergBusinessweek
, both of which quoted
unnamed sources close to the situation.
One source told Reuters
that Avaya's IPO is in a
"wait-and-see mode," though others added that Avaya and its
ownersprivate equity firms Silver Lake and TPG Capitalare committed to the
IPO. However, no dates have been decided.
life as part of AT&T, then was part of Lucent Technologies before becoming
its own company in 2000 when Lucent spun it off. It was listed on the New York
Stock Exchange for seven years before Silver Lake and TPG bought it for $8.3
billion in 2007 and took it private.
officials have worked hard over the past several years to build up its
networking and communications capabilities. In 2009, Avaya bought Nortels
Enterprise Solutions business for $915 million, part of Nortels fire sale
after it went into bankruptcy. The deal brought business-level networking
technology to Avaya.
A year later,
Avaya officials introduced its Virtual Enterprise Network Architecture (VENA),
which is designed to simplify data center operations and extend private clouds
from the data center to remote offices.
Avaya also is
looking to expand its communications and collaboration portfolio. In 2009, the
company launched its Aura unified communications (UC) platform, and has been
adding to it since. At the Enterprise Connect show the week of March 26, Avaya launched its Collaborative Cloud framework
and video collaboration, as well as a suite of cloud-based solutions, called
AvayaLive. That includes AvayaLive Connect, an integrated UC offering for
smaller businesses that includes everything from voice and voice conferencing
to messaging, video and mobility.
also is looking to bolster is video conferencing capabilities by buying Radvision for $230 million
in a deal
expected to close within three months. Avaya currently partners with various
video collaboration vendors, but officials are looking to offer greater
integration with its own in-house technology through the Radvision deal.
despite Avayas efforts, investors reportedly view Avaya as an established
company in a mature market, and are more interested in more up-and-coming
spaces like social media, cloud computing and mobility.
Some of the
more attractive IPOs being considered include not only Facebook and Palo Alto
Networks, but also Workday, which makes HR software, and ServiceNow, which
makes technology management software.