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Friday, Oct 4
Oracle reportedly held buyout talks with Avaya
- Reuters reports Avaya, a top provider of telecom hardware/software for enterprises and contact centers, held buyout talks with Oracle (ORCL) earlier this year. However, the talks are said to have "fizzled" in recent months.
- Avaya was taken private by P-E firms TPG and Silver Lake for $8.4B in '07. The company has been struggling to deal with market saturation, competition from the likes of Cisco and Microsoft, and an industry shift towards hosted/cloud-based telecom services (RingCentral's IPO drives home the strength of that trend).
- Avaya's sales fell 7% Y/Y to $5.17B in FY12, and 8% to $1.15B in its most recent quarter. Thanks to its P-E owners, Avaya had $6.1B in debt at the end of March '13, and just $303M in cash. The company filed for an IPO back in 2011, but its plans have been on hold ever since.
- Buying Avaya would dramatically expand Oracle's enterprise hardware ops, which are contending with revenue declines of their own.