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.
Industry: Unified Communications
- Senior Cyber Risk Consultant, UK - Remote first- Exclusive
- United Kingdom
- Depended on experience.
Cyber Security Risk Consultant to join specialist, people first security consultancy. WARNING if you want a large, slow moving, high politics, high travel security consultancy that demands their a pound of flesh this is NOT for you. Client focused opportunity. Prior consulting experience is essential within Cyber Security. Experience working with businesses to identity and make recommendations to mitigate cyber risk. Some of the nice to have certifications. CRISC, ISO27001 Lead implementer, CISA, CISM, CISSP UK based - remote first mentality. (With some travel) Training budget Unlimited holiday Looking to interview immediately Unable to offer sponsorship.
- identity access Management Consutlant
- Upto £80,000 plus benefits
An Identity & Access Management Consultant is needed for an expanding business based in the United Kingdom. (Remote role with monthly office meet ups) The Identity & Access Management Consultant will be responsible for the technical design and implementation of Identity & Access Management/IAM products for a wide variety of clients. Deliver bespoke end-to-end consultancy service to our clients, from gathering requirements through to implementation. Work in a close team designing, developing, and implementing first-class IAM solutions. Manage client relationships, working closely with key stakeholders to continually evaluate business requirements and ensure the highest quality solution delivery. If you are interested we are looking for an individual with Previous experience working within the IAM or CIAM field is essential, Strong knowledge with SAML and Oauth and ideally OpenID Previous experience from any of these technologies: One Identity, SailPoint, Saviynt, Ubisecure, Ping Identity, would be advantageous
- 17'5 NOT 4 7R4P | Pen testing Lead 100k++
Lead Penetration tester wanted please. - This is however a Master level as appose to padawan. 1. 100k+ for the skilled individual. 2. Research / training time 3. Hybrid role- 3 days at home 2 in the office with the team in London. (11am - 16:00) 4. Exclusive opportunity. So yours to hear about if you are quick. Infrastructure and Web application / red teaming pen testing experience Someone that can scope, deliver and speak to clients.
- It's Pen Testing, The good, the bad and the ugly
- United Kingdom
A new lead Pen Testing opportunity, AND slightly different from the usual you may see. The good, the bad and the ugly… Lalalalala la laa laaaa The GOOD 1. £90-110k for the skilled individual. 2. Research / training time 3. Hybrid role- 3 days at home 2 in the office with the team in London. (11am - 16:00) 4. Exclusive opportunity. So yours to hear about if you are quick. The bad 1. You have to apply or email me so we can speak. 2. 17'5 NOT 4 7R4P or click bait The ugly 1. It’s only ugly if you don’t reply and someone else you know gets it. Infrastructure and Web application / red teaming pen testing experience Someone that can scope, deliver and speak to clients. Apply today for more information.