Will Avaya be acquired? The unified communications and contact center solutions provider issued a vague update today. An Avaya statement disclosed:
"Avaya confirmed today that its review of a range of strategic alternatives is ongoing and it remains in advanced discussions. Avaya’s board of directors and management, supported by its legal and financial advisors, are working expeditiously to conclude the deliberate and comprehensive review. There can be no assurances regarding the timing of any action or transaction nor that the strategic review process will result in any particular outcome. The Company does not intend to provide additional updates unless or until it determines that further disclosure is necessary."
Related Update - October 3, 2019: RingCentral Invests In Avaya
Original September 12, 2019 Story Continues Below
Avaya disclosed on August 13 that it was evaluating strategic alternatives for the company. At the time, the company said it expected to make a decision on the process within 30 days. Fast forward to present-day, and that self-described Avaya deadline is this business week.
Among the potential bidders that may want to acquire Avaya:
- Mitel Networks, which apparently bid for the company in August.
- Clayton Dubilier & Rice (CD&R), a private equity firm that apparently made an all-cash bid for Avaya in August. RingCentral may also be involved in that CD&R bid, Reuters reported in August.
Among the nuances Avaya's board may be mulling: The Mitel deal may involve Avaya shareholders accepting stock in the combined company, according to reports. The CD&R deal, by contrast, would allow Avaya shareholders to cash out -- though the valuation would be less than the Mitel offer, Reuters reported in August.
Among the additional companies that may have given Avaya a look: Apollo Global Management, Permira Holdings and Searchlight Capital Partners (which owns Mitel), according to an April 2019 Bloomberg report.
And of course, there's a chance Avaya could simply decline takeover offers and continue forward on its own.
None of the alleged bidders have commented about the M&A rumors.
Avaya for Sale? The Background
Avaya hired J.P. Morgan to explore “strategic alternatives intended to maximize shareholder value,” according to CEO and President Jim Chirico, back around May 2019.
Avaya has evolved from a hardware provider into a cloud-centric communications provider over the past decade. But the journey hasn’t been easy. After stumbling under previous owners, the company emerged from Chapter 11 bankruptcy protection in December 2017 with hits partner strategy intact.
Avaya typically holds its major partner and customer conference in Q1 of each year. The Avaya Engage 2020 conference is scheduled for February in Phoenix.
