https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Mergers and Acquisitions


ThinkStock

Cash

Avaya Networking Biz Saga Ends in Acquisition by Extreme Networks

  • Written by Kris Blackmon
  • June 2, 2017
One chapter of Avaya's long and troubled story may be coming to a close. Extreme Networks has confirmed that it will acquire Avaya's networking business for $100 million.

One chapter of Avaya’s long and troubled story may be coming to a close. Extreme Networks has confirmed that it will acquire Avaya’s networking business for $100 million.

The deal has been on the radar since March, but Avaya held off in the hopes of getting a higher bid in the wake of filing for Chapter 11 in January. After getting no more bites, the company agreed to the rock-bottom sale to Extreme.

Avaya has struggled mightily in recent years under the weight of private equity debts it bought in 2007, just before the Great Recession sent interest rates plummeting. It hasn’t posted an annual profit since.

We watched throughout 2016 as it tried one move after another to get out from under $6 billion in debt to no avail. Let’s take a look back at the series of events that led to this week’s announcement:

  • In May of last year, rumors began to circulate that Avaya would soon be up for sale as President and CEO Kevin Kennedy confirmed the company was working with Goldman Sachs to “evaluate expressions of interest that have been received relative to specific assets, as well as explore other potential strategic opportunities.”
  • In June, facing a $616 million term loan payment, Avaya met face-to-face with a group of its creditors including Blackstone Group LP and Apollo Global Management LLC who were pushing for the company to halve its debt load.
  • August saw Avaya’s creditors meeting to devise a plan to push Avaya to restructure its balance sheet. The lenders, led by Frankline Resources Inc., wanted to reach an agreement among investors and present a focused plan when dealing with the company.
  • Things were relatively quiet until November, when reports surfaced that Avaya was considering a sale of its call-center business as well as filing Chapter 11. Buyout firm Clayton, Dubilier & Rice (CDR) was rumored to be considering purchasing the business unit for $4 billion, but the deal fell through.
  • That brings us to January, which saw Avaya pulling the trigger on Chapter 11, reversing its stance on selling its call-center business and affirming its intention to focus on providing unified communications. 
  • In keeping with that mission, the company began talks to sell its networking arm to Extreme Networks in March.

For its part, pure-play networking provider Extreme has been busy with a series of acquisitions designed to strengthen its position in the market, which is led by giants HPE and Cisco. Last October, it acquired Zebra Technology’s wireless LAN business for $55 million, and in March, it bought Brocade Communications networking arm from Broadcom for $55 million.

M&A advisory martinwolf said this puts Extreme in a position to provide end-to-end capabilities.

“Seeking to complete its end-to-end reach in a single combined platform within the next year, the Avaya acquisition would bring deployment simplicity, micro-segmentation and fabric technology with embedded security, while the Brocade portfolio would bring high-end data center networking along with visibility and automation,” it said in an email.

 

Tags: MSPs Mergers and Acquisitions

Most Recent


  • analytics
    ScalePad Buys Cognition360, Expands Into Business Intelligence, Analytics for MSPs
    ScalePad had record-breaking financial performance in 2022, the company said.
  • Vista Takes KnowBe4 Private
    The 20 MSP Acquires Texas, Oklahoma-Based Partner Firms
    The two acquisitions follow 13 by the company in 2022.
  • Top 20
    Top 20 Stories in January: Avaya, Microsoft, IBM, AWS, Datto, More Layoffs
    ChatGPT cracks our list for the first time. We've also got new hires and security training. But what was No. 1?
  • Cloud Roundup
    Cloud Computing News: Broadcom-VMware, Google-Anthropic, Red Hat, More
    A new week is kicking off with a slew of cloud updates.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Woman with questions
    Should We Just Call Master Agents Distributors?
  • Drive revenue
    Proofpoint Protect: Rising Vendor, Partner Revenues Amid COVID-19
  • Acquisition
    Private Equity Firms Snapping Up ExtraHop in $900 Million Acquisition
  • Woman lifts lid on box
    Nuvias CEO Lifts Lid on Cloud Distribution Acquisition

Upcoming Events

View all

Channel Partners Conference & Expo

May 1, 2023 - May 4, 2023

Channel Partners Europe

June 13, 2023 - June 14, 2023

Channel Futures Leadership Summit

October 30, 2023 - November 2, 2023

Galleries

View all

New, Changing Channel Programs: Aryaka, IBM, Google Cloud, RPA Provider

February 8, 2023

Trellix Unveils New Xtend Global Partner Program for XDR

February 8, 2023

Abundant IoT, Advisors Tackle the eIoT Opportunity

February 6, 2023

Industry Perspectives

View all

The Software Patching Problem – Solved

February 3, 2023

How to Break Through the Growth Ceiling

February 1, 2023

5 Things to Look for in a UC Partner

January 31, 2023

Webinars

View all

Next-Generation MSP Platform: The Building Blocks for Your Business

February 15, 2023

The SMB Opportunity: How to Sell and Service the SMB Market, Capture Customers and Expand Your Business

February 23, 2023

How To Boost Your Business With White-Label UCaaS

February 28, 2023

White Papers

View all

6 UCaaS Reseller Challenges and How Real World Businesses Solved Them

February 1, 2023

Frost Radar: North American UCaaS Market, 2022

February 1, 2023

The Complete Guide to White-Label UCaaS for Reseller Success

February 1, 2023

Channel Futures TV

View all

Coffee with Craig and James Episode 117: Cato Networks, Video Killed the Podcast Stars

Retired Astronaut Capt. Scott Kelly Previews His CP Expo Keynote

December 21, 2022

Fusion Connect Eyes Future with Intrado UC, Managed Network Customers

September 23, 2022

RingCentral Focused on Hybrid Work, Microsoft Teams, Other Integrations

September 23, 2022

Twitter

ChannelFutures

.@SafeGuard_Cyber rolls out new partner program for #MSSPs. dlvr.it/Sj7nP3 https://t.co/WAM8yY3li5

February 8, 2023
ChannelFutures

To share a strong brand story about your place in the channel, first you need to find your unique and differentiate… twitter.com/i/web/status/1…

February 8, 2023
ChannelFutures

.@Trellix launches new Xtend Global Channel Partner Program. #XDR dlvr.it/Sj7blb https://t.co/rEqajhFB7k

February 8, 2023
ChannelFutures

In the face of growing economic uncertainty, Channel Futures is taking an in-depth look at salaries & satisfaction… twitter.com/i/web/status/1…

February 8, 2023
ChannelFutures

At @DTEN_Global, the new partner program empowers global partners to increase expertise about the company's hardwar… twitter.com/i/web/status/1…

February 8, 2023
ChannelFutures

[email protected] Security names new CEO, closes $50 million in new funding. #SaaS dlvr.it/Sj79zD https://t.co/fwUmGYGboO

February 8, 2023
ChannelFutures

.@npdgroup forecasts B2B budgets will be lower in 2023, resulting in a 2% revenue decline year over year.… twitter.com/i/web/status/1…

February 8, 2023
ChannelFutures

#Microsoft embeds #ChatGPT into @bing promising to upend search. @msPartner dlvr.it/Sj59Xy https://t.co/1w4Fp0j9fP

February 8, 2023

MSP 501

The industry's largest and most comprehensive partner awards program.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X