Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
eWEEK.com
Search
eWEEK.com
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Networking

    Avaya Reportedly Considers Selling Contact Center Unit

    By
    JEFF BURT
    -
    August 8, 2016
    Share
    Facebook
    Twitter
    Linkedin
      tech business

      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.

      “Our purpose in assessing and taking capital structure actions is to improve the balance sheet as we progress through our ongoing transition as a software and services company,” Kennedy said in May. “We will focus on maintaining Avaya’s strong and broad customer relationships, continuing to advance our industry leading technology and multi-year operational improvement trend, and ensuring customers continue to receive our outstanding service and support that drives exceptional customer satisfaction.”

      The growing demand for more software- and cloud-based solutions and the rising competition in the communications space are roiling the industry, which is seeing its share of consolidation and vendor transformations. Some examples include Nokia buying Alcatel-Lucent, Atos buying Unify, Lifesize spinning out of Logitech after shifting its portfolio to the cloud, and private equity firm Siris Capital planning to buy Polycom for about $2 billion.

      More recently, ShoreTel officials announced last week that they, too, were reviewing options for the company’s future, which could include selling businesses or the entire company. Meanwhile, Mitel, which over the past couple of years has bought Aastra Technologies and Mavenir Systems, is continuing to look for other acquisitions despite its failed efforts to purchase ShoreTel and Polycom.

      Genesys itself last month received an infusion of cash via a $900 million investment by buyout firm Hellman and Friedman.

      Avaya in March announced Zang, a subsidiary that sells a communications platform-as-a-service, part of the move toward cloud-based solutions. Analysts with Synergy Research Group reported that in the fourth-quarter 2015, revenues from hosted and cloud solutions grew 10 percent year-over-year, even as revenues from on-premises-based systems fell 3 percent. Synergy also listed Avaya as the third-largest vendor in the global collaboration space, behind Cisco Systems and Microsoft.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      CHRIS PREIMESBERGER - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      CHRIS PREIMESBERGER - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      EWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      ZEUS KERRAVALA - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      WAYNE RASH - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Info

      © 2020 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×