Story image

Bankrupt Avaya enters asset purchase agreement - A/NZ MD assures partners

08 Mar 17

In January this year Avaya filed for bankruptcy under chapter 11 in the United States in a move the networking vendor reported would better position itself for the future.

Today the company announced it has entered into an asset purchase agreement with Extreme Networks.

Extreme will serve as the primary bidder in a section 363 sale under the Bankruptcy Code to acquire Avaya’s Networking business for a transaction value of approximately $100 million, subject to adjustments.

When Avaya announced it had commenced formal proceedings to restructure its balance sheet in January this year, president and CEO of the company, Kevin Kennedy declared they were conducting a comprehensive assessment of the various alternatives available to them, including expressions of interest in certain Avaya assets.

“After extensive evaluation, we believe that a sale of our Networking business is the best path forward for all stakeholders,” says Kennedy. “It provides a clear and positive path for our Networking customers and partners and enables the Company to focus on its core, industry-leading Unified Communications and Contact Centre solutions.”

Kennedy asserts that today’s announcement furthers their overall restructuring goals as they position the rest of Avaya for long-term success.

“The possibility of Avaya Networking being part of a pure-play networking company like Extreme Networks would allow greater opportunities for its products and services to thrive and the industry to continue to benefit from our award-winning wired, WLAN and Fabric technology,” Kennedy says,

And so what does that mean for A/NZ?

The completion of the transaction is subject to an auction process during which other companies may bid for Avaya’s networking business, and is expected to close by June 30, 2017.

Managing director for A/NZ at Avaya, Peter Chidiac says despite this tumultuous time, it will be business as usual.

“While we understand this announcement may cause uncertainty in the market, we want to assure our Australian and New Zealand customers and partners there will be no change to the way we interact with and support them during the sale and ultimate transition process,” Chidiac says.

“Since May 2016, Avaya Inc. has been carefully evaluating the best options to improve its balance sheet. This is the next step of that process.”

Chidiac says Avaya has been carefully going over the best options to improve its balance sheet since May 2016, and this is the next step in that process.

“Avaya has and continues to approach the sale with stringent criteria to ensure our networking customers, and the industry-leading technology we have developed, are protected. We believe Extreme Networks can provide safe hands for our networking customers and partners,” Chidiac concludes.

HPE promotes 'circular economy' for end-of-use tech
HPE is planning to show businesses worldwide that throwing old tech and assets into landfill is not the best option when it comes to end-of-use disposal.
InternetNZ welcomes Govt's 99.8% broadband coverage plan
The additional coverage will roll out over the next four years as part of the Rural Broadband Initiative phase two/Mobile Black Spots Fund (RBI2/MBSF) programme expansion.
Dr Ryan Ko steps down as head of Cybersecurity Researchers of Waikato
Dr Ko is off to Australia to become the University of Queensland’s UQ Cyber Security chair and director.
Radware joins Chillisoft’s expanding portfolio
The cloud DDoS prevention, app delivery controller, and web app firewall expert is another step toward a total enterprise security portfolio.
Commerce Commission report shows fibre is hot on the heels of copper
The report shows that as of 30 September 2018 there were 668,850 households and businesses connected to fibre, an increase of 45% from 2017.
Wearables market flourishing - fuelled by smartwatches
A market that has stuttered in the past now has a bright forecast as adoption of wearable technology continues to thrive.
The tech that helped the first woman to sail around Australia
Lisa Blair used devices from supplied by Pivotel to aid her in becoming the first woman to circumnavigate Australia non-stop.
Why there will be a battle for the cloud in 2019
Cloud providers such as AWS, Azure, and Google will likely find themselves in a mad scramble to gain additional enterprise customers.