Avaya and RingCentral share prices soar on the back of partnership
Avaya has seen its share price jump 29 per cent after it confirmed it has struck a deal with RingCentral, which will see a $500m (£405.8m) investment from the latter.
The deal is expected to close in the fourth quarter of this calendar year - subject to regulatory approval - and will see RingCentral pump $500m into Avaya, including $125m of redeemable preferred equity which translates to a six per cent stake in Avaya.
The remaining $375m will be advanced primarily in stock for future payments and certain licensing rights.
Avaya will also buy back up to $500m of shares and pay down $250m of debt.
RingCentral's own share price jumped 25 per cent when word of the deal emerged.
As part of the venture, Avaya will introduce its global unified comms (UC) as-a-service offering, Avaya Cloud Office by RingCentral. It will offer a full suite of UC, contact centre (CC), UCaaS and CCaaS solutions to customers in 180 countries.
"Avaya and RingCentral's joint investment and commitment to bringing Avaya Cloud Office to market create an unprecedented opportunity to accelerate the transition to the cloud with attractive economics for our customers and partners," said Jim Chirico, Avaya CEO.
"This also gives us the opportunity to unlock value from a largely unmonetised base of our business as it brings compelling value to our customers and partners.
"We believe this highly complementary partnership is a game-changer that expands the total addressable market for Avaya and creates meaningful value for both Avaya and RingCentral."
Avaya Cloud Office is expected to launch in the first quarter of 2020 and is a "definitive differentiated solution", according to Vlad Shmunis, founder and CEO of RingCentral.
"We are excited to bring RingCentral's leading UCaaS platform to Avaya's installed base of over 100 million users and over 4,700 partners, providing long-term growth opportunities for both our companies," he stated.
Reports emerged last month that the beleaguered Avaya was considering a joint venture with RingCentral, a publicly listed company that specialises in videoconferencing and cloud communications.
It had earlier been reported that it was considering a takeover bid from rival Mitel as part of its strategic review.
"The strategic actions that we are executing as a result of our comprehensive review create new growth opportunities, return capital to our shareholders and de-lever our balance sheet," said Chirico.
"With a clear path forward, we will further invest in technology and innovation to continue bringing state-of-the-art solutions to our valued customers and partners."
Avaya recently saw its UK MD depart to take up the role of CEO at Maintel, one of its largest partners in the UK.
source channelweb
Industry: Unified Communications
Latest Jobs
-
- Information Security Manager- Global Sporting Brand. UK. £100,000
- London
- £100.000
-
REFCH8265 Identifier Project Information Security Manager- Global Sporting Brand. UK. £100,000 A unique and exclusive opportunity to DCL Search to provide leadership and guidance Information and IT Security practices to one of the most recognised sporting brands in the world. You will be the envy of your colleagues, friends and peers as you take the lead in developing and implementing a security strategy. You must have a blend of knowledge across information security and technical security and be able to build internal and external stakeholder relationships. To coin a well known phrase, you should be a player manager. You don’t need to be currently hands on configuring firewalls, monitoring SIEM alerts, but maybe you have in the past. Ideally you will have come from a technical background as you will be closing be working with technical teams. Skills should include, but not be limited to: Managing / developing to Incident response plans. Information Security Risk Management / compliance. Security awareness Driving remediation plans to address vulnerabilities etc. Hybrid working. Up to £100,000 + benefits.
-
- Lead Information and Cyber Security Specialist, Financial Services. Exclusive to DCL Search
- London
- 85,000
-
Consultative approach with experience engaging with internal stakeholders providing advice and guidance across information security policies and standards into projects and programmes. Risk identification / Assessment / Management across people and process. ISO27001. Open mindedness to take on projects and programmes that will involve advising, scoping, refining, improving technical security control relating to best practice. Preferred experience; PCI DSS ISA or consultative experience within security Payment card industry. Information Security / technical security controls within Financial Services. Risk Assessment / management across technical controls. Technical Security background. Experience within secure by design and the technical security controls relating to projects / programmes. iSO27001 Lead Implementer / Auditor. CISA, CISM, CISSP. 2 days a fortnight in London- or more if you want.. Hybrid reworking.
-
- Cyber Security Associate, Financial Services. Exclusive to DCL Search
- London
- £40,000
-
Exclusive Cyber Security Associate needed within a forward thinking financial services business head quartered in London. DCL Search have been engaged on an Identifier Project to attract the very best cyber talent to this business. Influence the cyber security capability and direction within the business. Learn new skills working within a collaborative team. Grow as a security professional. ROLE Triaging and troubleshooting security alerts at a level 1 / level 2 capacity. Reviewing security change management requests. Managing and use of security tooling such as; Endpoint management Vulnerability management Patch management CASB Experience with the following tools is desirable. ZOHO Desktop Central (Endpoint Management) Splunk (SIEM) Qualys CASB (Microsoft) Microsoft Azure Varonis DatAdvantage ADAudit Plus Sonicwall, Paloalto, Dark Trace, Cloudflare, Cisco Umbrella, Microsoft defender.
-
- Senior Cyber Security Engineer, Financial Services. Exclusive to DCL Search
- London
- 70000
-
Exclusive Senior Cyber Security Engineer needed within a forward thinking financial services business head quartered in London. DCL Search have been engaged on an Identifier Project to attract the very best cyber talent to this business. Influence the cyber security capability and direction within the business. Learn new skills working within a collaborative team. Grow as a security professional. ROLE Day to day operations, management and scalability of existing cyber security systems Managing of and maturing security tooling such as; SIEM Endpoint Management Firewall Patch Management CASB Vulnerability management. Triaging and troubleshooting security alerts. Improve tooling, reducing false positives. Reviewing, approving, escalating security change management requests. Implementing new cyber security systems. Ideal technical experience · Vulnerability Management: Qualys · Endpoint Management: ZOHO Desktop Central · Forcepoint: CASB, DLP, webs security, email security. · SIEM (Splunk) · Firewalls: Sonicwall, Palo Alto · Endpoint Microsoft Defender · Appreciation of ISO27001, GDPR, PCI, etc 2 days a fortnight in London- or more if you want.. Hybrid reworking.