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
-
- Business Development | Healthcare | Warm accounts | UK
- England
- N/A
-
Business Development | Healthcare | Warm accounts | UK Healthcare Cyber Security UK Based An experienced Business Development Manager is required to drive new cyber security revenue across a warm healthcare account base. This role is focused on new business and account growth, engaging healthcare organisations to understand risk, priorities, and operational challenges, and positioning appropriate cyber security solutions and services. Key Responsibilities Drive new business sales into a warm healthcare account base Develop and close new opportunities across healthcare organisations Build senior level relationships with IT, security, and procurement stakeholders Own the full sales lifecycle from first conversation through to close Work closely with technical pre sales and delivery teams Experience Required Proven B2B new business sales experience within cyber security or technology Healthcare sector experience desirable Strong consultative sales and closing capability Ability to achieve UK Security Clearance is required UK based with flexibility to travel What’s on Offer Warm accounts with new business focus Clear revenue ownership Competitive base salary with uncapped commission
-
- Technical Pre Sales Cybersecurity Consultant. Healthcare
- England
- N/A
-
Technical Pre Sales Cybersecurity Consultant UK Remote | Healthcare Focus Overview We are seeking an experienced Technical Pre Sales Cybersecurity Consultant to support healthcare organisations by delivering advisory, solution design, and security uplift services. This role focuses on improving security outcomes, addressing operational challenges, and enabling informed technology decisions across complex and regulated environments. The position blends technical pre sales expertise with a consultative approach, working closely with clinical, technical, and commercial stakeholders to shape effective cybersecurity solutions. The individual must be able to achieve UK Security Clearance. Key Responsibilities Provide technical pre sales support across cybersecurity solutions and services for healthcare organisations Engage stakeholders to understand security challenges, risks, and operational pain points Deliver advisory guidance and recommendations to strengthen security posture and resilience Translate customer requirements into clear, outcome focused technical and commercial solution designs Act as a trusted technical advisor throughout the sales and early delivery lifecycle Produce clear technical documentation, recommendations, and customer facing materials suitable for regulated environments Collaborate closely with sales, delivery, and technical teams to align solutions with customer needs Experience and Skills Proven experience in technical pre sales or cybersecurity consultancy Experience working within healthcare or other highly regulated sectors Broad knowledge of cybersecurity technologies, managed services, and risk based approaches Strong communication skills with the ability to engage both technical and non technical stakeholders Confident operating in a client facing, consultative role UK based role with remote working Occasional travel for customer engagement as required
-
- Contract Technical Pre Sales Cyber Security Healthcare. SC clearance needed
- England
- Outside IR35
-
Contract Technical Pre Sales Cyber Security Healthcare Outside IR35 Contract | UK Remote | Healthcare Focus Existing SC clearance is required. Overview Seeking an experienced Technical Pre Sales Cybersecurity Consultant is required to deliver advisory and uplift services across complex healthcare organisations. This Outside IR35 contract operates on a consultancy basis, focused on improving security outcomes, addressing operational pain points, and supporting informed Cyber Security decisions. The role combines deep technical pre sales capability with consultative advisory delivery, working across clinical, technical, and commercial stakeholders to shape effective and proportionate cybersecurity solutions. Responsibilities Provide technical pre sales consultancy across cybersecurity solutions and services within healthcare environments Engage senior stakeholders to understand security challenges, risks, and operational pain points Deliver advisory guidance and uplift recommendations to improve security posture, resilience, and maturity Translate healthcare requirements into clear, outcome focused technical and commercial propositions Act as a trusted technical advisor throughout the pre sales and early engagement lifecycle Produce concise technical documentation, recommendations, and advisory outputs suitable for regulated healthcare settings Experience Strong background in technical pre sales or cybersecurity consultancy Experience working with healthcare or other highly regulated environments Broad understanding of cybersecurity technologies, managed services, and risk based security approaches Ability to communicate complex technical concepts to both technical and non technical audiences Comfortable operating independently in a client facing advisory role
-
- London Sales Manager, Key Clients. Security. Immediate
- London
- N/A
-
London Sales Manager, Key Clients A senior sales leadership role within the cyber security services and technology market, focused on account development and revenue growth across key clients. You will lead a sales team with responsibility for customer retention, increasing share of wallet and maintaining a strong commercial pipeline. The role works closely with technical, delivery and marketing teams, as well as technology partners. Key focus Lead and coach a field based sales team Own forecasting, pipeline quality and revenue delivery Drive renewals and account development Expand customer investment across services and solutions Build relationships with vendors and partners Background Proven experience managing enterprise sales teams Consistent performance against revenue targets Cyber or IT security sales leadership experience Exposure to Palo Alto, Check Point, Microsoft, etc Commercially focused with a structured sales approach A role for a sales leader focused on long term client value and sustainable growth.