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Reuters first reported talks of a potential sale of Avaya last week, following alleged talks between the company’s current owners, Silver Lake Partners and TPG Capital LP. Although Reuter’s sources refused to be identified by name, they said the two companies valued Avaya between $6 billion and $10 billion.

Michael Cusanelli

May 23, 2016

1 Min Read
Avaya Sale Rumors Spark Questions About Company Future

Avaya could soon be up for sale, if rumors regarding the fate of the telecom provider turn out to be true.

Reuters first reported talks of a potential sale of Avaya last week, following alleged talks between the company’s current owners, Silver Lake Partners and TPG Capital LP. Although Reuter’s sources refused to be identified by name, they said the two companies valued Avaya between $6 billion and $10 billion.

Avaya was also rumored to be working with Goldman Sachs regarding possible sale opportunities. Avaya President and CEO Kevin Kennedy did confirm that Goldman Sachs is “helping Avaya evaluate expressions of interest that have been received relative to specific assets, as well as explore other potential strategic opportunities.”

However, company officials have refused to comment specifically on the nature of said discussions.

Whether or not a potential sale is currently in the works, such a plan could prove beneficial for Avaya following the company’s recent financial troubles. Avaya is currently in debt to the tune of $6 billion as a result of its shifting focus from hardware to software sales, and Q2 2016 figures showed a decrease in revenue of $54 million from Q1. With year over year figures also showing a decrease of $91 million, Avaya definitely needs to do something different unless it wishes slide even further into debt.

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About the Author(s)

Michael  Cusanelli

Associate Editor, Penton Technology Group, Channel

Michael Cusanelli is the associate editor for Penton Technology’s channel properties, including The VAR Guy, MSPmentor and Talkin' Cloud. He has written articles and produced video for Newsday.com and is a graduate of Stony Brook University's School of Journalism in New York. In his spare time Michael likes to play video games, watch sci-fi movies and participate in all things nerdy. He can be reached at [email protected]

 

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