Informations Constructeurs

PR: Avaya Buys Nortel, Sept 14th

On 14 September 2009, Avaya was selected, pending bankruptcy court approval, to acquire Nortel Enterprise Solutions for US$900 million and an additional pool of $15 million reserved for an employee retention program. The deal includes substantially all of the assets of Nortel’s global Enterprise Solutions business as well as the shares of Nortel Government Solutions, Incorporated and DiamondWare, Ltd. This announcement follows the completion of an auction, and the final transaction is subject to court and customary regulatory approvals in Canada and the United States.

Further regulatory review and approvals are required prior to closing the deal but this marks an important step in significantly strengthening Avaya’s leadership in business communications and positioning the company to effectively deliver industry leading enterprise communications solutions to customers around the globe.

What does this mean to Avaya partners?
With the combined strengths of both firms, Avaya and Nortel partners will be able to enjoy the benefits of increased global scale, expanded channel ecosystem, and an enhanced world-class portfolio of products and services. Partners in the federal sector can take advantage of an even greater opportunity to provide communication solutions that will not only support our public sector customers around the world, but also enhance citizen service.

With a broader portfolio and revenue base, we would also look to further enhance our funding for R&D to fuel future innovation, which translates directly into providing creative solutions for our customers.

Additionally, existing and new partners will benefit from Avaya’s commitment to success and profitability. This transaction strengthens Avaya overall and makes us a better channel partner.

"Azzurri has been an Avaya Platinum partner since the accreditation programme was launched and welcomes the acquisition of Nortel Enterprise Solutions by Avaya. It means our customers will be able to gain from synergies bred from the coming together of two fantastic technology companies. The consolidation will also benefit both customer bases as they will also be able to enjoy the convergence of IP communications and improved products brought to market faster."
Antony Vigar, Regional Sales Director, Azzurri Communications Ltd

Get Informed and Pick Up Your Toolkit!
Information and tools related to the Avaya-Nortel acquisition can be found on the Avaya Partner Portal (Highlights > Hot Topics > Avaya Agreement with Nortel). These tools include acquisition overviews, frequently asked questions, and talking points for you to use with customers and more.

What’s next?
Avaya and Nortel have begun to plan for integration activities such as product and service portfolio rationalization and determining a long term strategy for the combined company. As that information becomes available, we will be sharing that information with you.

In the meantime, please note that Avaya and Nortel are separate, independent competitors. Avaya’s business information, such as pricing, plans, and customer information, should remain confidential and not be shared with Nortel, and vice versa.


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July 20, 2009

Avaya Announces Agreements to Purchase Nortel’s Enterprise Solutions Business - July 20, 2009

Basking Ridge, N.J. – Avaya today announced that it has signed agreements to purchase Nortel’s enterprise solutions business for US$475 million.  Avaya believes the agreements are a significant step in strengthening its leadership in business communications and positioning the company to effectively deliver industry leading enterprise communications solutions to customers around the globe.

“The addition of Nortel Enterprise Solutions will increase Avaya’s global scale, expand our channel partner network, and strengthen our world-class portfolio of products and services,” said Kevin Kennedy, president and CEO, Avaya.  “This is a strategic opportunity to acquire talent and complementary assets that position the combined company for growth and success.  We are committed to protecting the communications investments of the customers of Avaya and Nortel, and to effectively executing the integration of Nortel Enterprise Solutions and Avaya.”      

“As the largest reseller of Avaya and Nortel equipment to Canadian business, Bell believes Avaya's history of leadership in enterprise communications makes it an ideal candidate for this proposed transaction,” said Stéphane Boisvert, President of Bell Business Markets. "Bell was the first major service provider to standardize on both Avaya and Nortel IP telephony solutions, and we are confident Avaya will continue to provide partners and customers with innovative business communications technologies and responsive customer support going forward.”

The proposed acquisition includes the Nortel Enterprise Solutions voice, data and government systems businesses.

"Avaya’s proposed acquisition of Nortel Enterprise Solutions is good news for our customers, who would benefit from the broadened range of compelling solutions,” said Hanif Lalani, CEO, BT Global Services.   “BT and Avaya have been working closely, and successfully, over the last couple of years. Building on our success, BT has plans to expand this engagement with Avaya over the next year to offer a full unified communications portfolio. Today’s news strengthens this expansion plan.”

The transaction is subject to a competitive bidding process and requires the approval of the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice.  Avaya expects that hearings before those courts to approve bidding procedures will be held within the next couple of weeks, followed by an auction, with hearings for approval of the ultimate sale to be held thereafter. 

In EMEA, Avaya has entered into an agreement with the Joint Administrators, on behalf of the EMEA entities for which they have been appointed and the transaction is subject to information and consultation with employee representatives and approval of the courts in France and Israel.  The transaction is also subject to customary closing conditions, including receipt of necessary regulatory approvals.

About Avaya

Avaya is a global leader in enterprise communications systems.  The company provides unified communications, contact centers, and related services directly and through its channel partners to leading businesses and organizations around the world.   Enterprises of all sizes depend on Avaya for state-of-the-art communications that improve efficiency, collaboration, customer service and competitiveness.   For more information please visit www.avaya.com.

Forward-Looking Statements

Certain statements contained in this press release are forward looking statements.  These statements may be identified by the use of forward looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “should” or “will” or other similar terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from our expectations include: our ability to develop and sell advanced communications products and services, including unified communications and contact center solutions; our ability to develop our indirect sales channel; economic conditions and the willingness of enterprises to make capital investments; the market for advanced communications products and services, including unified communications solutions; our ability to remain competitive in the markets we serve; our ability to manage our supply chain and logistics functions; the complexity of our IT infrastructure; the ability to protect our intellectual property and avoid claims of infringement; our ability to effectively integrate acquired businesses into ours; our ability to maintain adequate security over our information systems; environmental, health and safety laws, regulations, costs and other liabilities; the ability to retain and attract key employees; risks relating to the transaction of business internationally; pension and post-retirement healthcare and life insurance liabilities; and liquidity and our access to capital markets. We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

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