Avaya Reportedly Considers Selling Contact Center Unit
Reports of a possible deal to sell the business to Genesys comes three months after Avaya began reviewing options for dealing with its mounting debt.Avaya executives in May said the business communications and networking vendor was evaluating its options for the future as it deals with a debt burden hovering around $6 billion. Now the company reportedly is considering selling its contact center business for as much as $4 billion. Citing unnamed sources, Reuters reported that officials with Genesys Telecommunications Laboratory, a key player in the contact center technology field based in the United States, are talking with Avaya executives about acquiring the vendor's business. According to the sources, Genesys is one of several companies that have contacted Avaya about possibly buying the contact center business, and it is unclear whether a deal with Genesys will be reached. Officials with both companies have denied comment on the report. The possible deal comes at a time of transition for both Avaya and the larger enterprise communications field. Avaya is undergoing a transformation toward becoming more of a communications software and services provider, reflecting a growing trend in the industry toward cloud- and software-based solutions that enterprises are increasingly demanding. In the first three months of the year, Avaya generated $904 million in revenue, a $91 million drop from the same period last year. Company President and CEO Kevin Kennedy at the time said Avaya's ongoing shift in focus contributed to both the drop in revenue as well as the hiring of Goldman Sachs and Centerview Partners as financial advisers to help assess the vendor's current structure and options for the future, which could include selling assets or the entire company.
Reports earlier in the year indicated that Avaya owners Silver Lake Partners and TPG Capital, which bought the company for $8.2 billion in 2007, were considering selling Avaya, which they believe could be worth $6 billion to $10 billion.