Cisco to Acquire Avaya?
Cisco to Acquire Avaya?
May 30, 2007: Telecommunications equipment manufacture Avaya is reportedly preparing for a part, or possibly complete sale of its business to either Cisco or Nortel Networks.
According to News.com, the company is in the early stages of negotiations, with executives saying that it could still remain independent.
If it does decide to merge with Cisco or Nortel, Avaya would provide a substantial boost to either companies IP telephony offerings. While Cisco already has a strong IP telephony business, by purchasing Avaya it would significantly bolster it’s hardware business, while keeping Avaya’s assets out of its competitor’s hands.
The equity firm Silver Lake Partners is also reportedly interested in the US$6.1B firm, which was detached from Lucent in 2000.
Speculation of the deal sent Avaya’s share price soaring 13.9 percent to US$15.57 yesterday.
Comment on this story