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
-
- SPLUNK SOC Analyst level 3, London.
- London
- N/A
-
SPLUNK SOC Analyst level 3, Must be able to commute to the City of London. Onsite role. Security clearance needed. The SPLUNK SOC Analyst level 3 must have current experience working within a SOC environment with specific experience using a range of tools and techniques to investigate security incidents. Current experience with Splunk is essential. any additional experience Individuals with Elastic Security SIEM are highly desirable. Any of the following certifications are desirable Splunk Phantom certified admin, Splunk Core Certified Power User / Advanced, Splunk Certified Enterprise Security Admin, etc The role will include, but not be limited to working with sophisticated information security tools, investigating security incidents, incident management, technical escalation, process improvement, research into the latest threats, reporting etc The individual MUST currently be living in the UK and be able to achieve UK security clearance. (SC) This is a permanent role To arrange a call with Chris Holt https://calendly.com/chris-holt/arranged-call-with-chris-holt-elastic-siem-engineer-soc Chris.Holt@dclsearch.com
-
- ISO 27001 & Business Continuity Security Specialist, End User
- United Kingdom
- 70000
-
CH7828 ISO 27001 & Business Continuity Security Specialist, End User, £70,000 United Kingdom ISO 27001 & Business Continuity Security Specialist needed to join a Cyber team within an end user. The ISO 27001 & Business Continuity Security Specialist will have end to end responsibility for the information security and Business Continuity management system. ISMS/BCMS. Both from an information security and technical security perspective working alongside the CISO. Experience must include, but not be limited to; a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling to achieve compliance. ISO 22301, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. Experience taking a company through accreditation is highly desirable Experience managing internal stakeholders, technical teams and external third parties essential Flexible working, very occasional travel to London office This is an exclusive role to DCL Search & Selection. Looking to interview immediately. https://calendly.com/chris-holt/iso-27001-business-continuity-security-specialis
-
- PCI- DSS Security Consultant, End User
- London
- £70,000
-
PCI- DSS Security Consultant needed to join a Cyber team within an end user. The PCI- DSS Security Consultant will have end to end responsibility for PCI - DSS and its continuing certification. Both from an information security and technical security perspective working alongside the CISO. Experience must include, but not be limited to; a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling to achieve compliance. PCI objectives / 12 key requirements, OWASP top 10, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. PCI Cloud compliance, specifically someone with experience taking PCI-DSS from on premise into the cloud is HIGHLY desired. However, someone with Solid PCI experience with a strong technical background which include Cyber / Secure by design etc would be considered. Experience managing internal stakeholders and external third parties essential. Flexible working, but with the ability to get into London. This is an exclusive role to DCL Search & Selection. 1st stage interviews to happen the week of the 14th September Arrange a call with Chris on https://calendly.com/chris-holt/arrange-a-call-chris-dcl-pci-compliance
-
- IAM Contractor CyberArk
- Unknown
- N/A
-
Identity & Access Management Architect Contractor Flexible • Extensive PAM / IAM experience required, • MUST have CyberArk and or Beyondtrust. Privileged access management • Technical review, recommendation, design and hands on technical delivery. • 6 month contract Arrange a call with Chris Holt https://calendly.com/chris-holt/arranged-call-with-chris-holt?month=2020-09