Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Avaya sets $1 billion public offering

According to the SEC filing, the company showed negative net income throughout the period since it was bought in 2007 by a combination of Silver Lake Partners and the Texas Pacific Group that paid $8.2 billion for the company

Avaya is going public again, filing today with the Securities and Exchange Commission for an initial public offering worth $1 billion.

After the offering would value the company at $5 billion, and it would use the cash raised in the offering to pay down long-term debt, among other things, the company says in a statement.

BACKGROUND: The Avaya FAQ 

Morgan Stanley & Co. LLC, Goldman, Sachs & Co., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Merrill Lynch, Barclays Capital Inc., UBS Investment Bank and Credit Suisse Securities (USA) LLC are handling the IPO.

According to the SEC filing, the company showed negative net income throughout the period since it was bought in 2007 by a combination of Silver Lake Partners and the Texas Pacific Group that paid $8.2 billion for the company.In its filing the company says it will continue development of contact center and voice communications products, invest in R&D, expand sales and distribution, go after new markets and train staff and partners to sell new products and services. It mentions its Avaya Flare Experience videoconferencing/ unified communication platform as one of these new products.

It also says the company plans to acquire new technologies through a combination of licensing, development contracts, alliances and acquisitions. Avaya said it will train employees and channel partners to service new products and applications so service is consistent around the world.

At the same time, once the company goes public, it will face the demands of Wall Street quarter-to-quarter, something it has been shielded from as a privately held company.

Avaya issued a press release announcing the IPO but refused further comment.

Since it was bought in 2007, Avaya has been promoting its unified communications software as compatible with other vendors' gear and readily adaptable for customers who want to start with basic communications features but expand to incorporate conferencing and collaboration via voice, video, instant messaging and data.

The drumbeat from the company is that it wants to make UC ubiquitous and simple for end users.

Read more about lan and wan in Network World's LAN & WAN section.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Avaya, Credit Suisse, Deutsche Bank, Deutsche Bank, Goldman, Inc., LAN, Morgan, Morgan Stanley, SEC, Securities and Exchange Commission, Silver Lake Partners, Wall Street
References show all

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Avaya, business issues, Capita, citigroup, corporate issues, Credit Suisse, LAN & WAN, Morgan Stanley, UBS
Latest Blog Posts
Whitepapers
  • Eliminating Tape
    When it comes to storage and backup, the old tape may not ‘cut the mustard’ in today’s world. But how does one move on from tape? This Computerworld Australia Guide, sponsored by EMC, examines whether the Cloud will provide a viable long-term archiving option to magnetic tape. This guide also looks at eliminating tape by examining storage and backup alternatives, taking examples of organisations that have managed to overcome problems with tape. Read more.
    Learn more »
  • Stella Travel Services embarks on a strategic refresh of print operations
    Stella Travel Services embraces Managed Print Services (MPS) to deliver savings, centralise and consolidate print operations in order to gain control of print costs and streamline IT support. Read more.
    Learn more »
  • 10 Mobile Security Requirements for the Bring Your Own Device (BYOD) Enterprise
    An enterprise mobility strategy needs to include more than the provisioning and security services available through mobile application and MDM solutions. To meet the mobility and security requirements of mobile users, enterprises need to look at deploying a solution for mobile content management (MCM) that supports BYOD policies. Read this whitepaper to learn: Why provisioning for mobile users has become more complex; Ten requirements to consider when selecting a mobile content security solution.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Recent comments