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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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Comments (8)
Why would Cisco buy Avaya? They wouldn'tBy Anonymous on May 29, 2007, 5:07 pmInteresting. Seems like Cisco's taken a pretty decent bit out of both Avaya and Nortel if they are both trying to figure their strategies out and possibly merge. Re:...
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True, but you would hardlyBy Anonymous on May 30, 2007, 5:24 pmTrue, but you would hardly class Cisco in the same league as someone like Avaya when it comes to delivering applications in the contact centre space for example....
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I suppose that from a pureBy Anonymous on May 31, 2007, 10:59 pmI suppose that from a pure contact center bells and whistles perspective, some other players may have a leg up but you have to admit that the features that matter...
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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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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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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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