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.