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Report says Avaya in talks for private-equity buyout

Possible deal in the works with Silver Lake Partners to take VoIP vendor private
By Phil Hochmuth , Network World , 05/29/2007

A private-equity firm is reportedly seeking a buyout of Avaya, according to The Wall Street Journal.

The report says Avaya is in talks with private-equity firm Silver Lake Partners about an acquisition plan for the enterprise VoIP provider. Avaya on Sunday postponed its May 31 analyst conference, which observers say points to a potential buyout scenario.

Avaya was recently talking to rival Nortel about a buyout deal earlier in the month, the Journal says. That deal reportedly fell through as the two sides could not agree on whether to base the deal on Nortel cash or stock.

Avaya generated $5.2 billion in revenue in fiscal 2006, which ended Sept. 30, and netted $220 million in profit.

Avaya's stock, which fell as far as $2 per share five years ago, was up to $15.65 at 9 a.m. Tuesday, May 29 — up 15% from its close Friday.

While private-equity buyouts are becoming a trend, network vendors are not often mentioned as targets. In 2005, Enterasys, the former Cabletron enterprise switching arm, was taken private in a $386 million buyout by The Gores Group and Tennenbaum Capital Partners. 3Com has also surfaced as a potential network-gear maker that could go private.

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I beg to ask what is unifiedBy Anonymous on October 1, 2007, 12:27 pmAdvocate? Yes this might be cool technology but it only works when you have > 1000 agents. Most contact center are in 200 agent space. Case in point: the only...

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I express my opinion basedBy Anonymous on June 8, 2007, 9:21 amI express my opinion based on having implemented both technologies in ACM, IC, CCM and IPCC. I have also worked with both IVR platforms in AVP and CVP so I can...

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Unify This and drink more koolaid!By Anonymous on June 6, 2007, 8:45 amC'mon have an original thought that did not come from your Cisco reps lil playbook. How pathetic it must be to follow that logic like a lil lost pup. Avaya and Nortel...

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I beg to ask what is unifiedBy Anonymous on June 5, 2007, 6:09 pmI beg to ask what is unified about Avaya ACM? They have tied old school TDM hardware together finally after all of these years and vendors such as Geotel and Genesys...

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Unified Communications ManglerBy Anonymous on June 1, 2007, 1:58 pmThe only thing Unified about Communications Mangler is the name. As far as contact center is concerned, Geotel is woefully outgunned compared to just about everything...

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