Avaya has exited Chapter 11, and its president has slammed his rivals for capitalising on its woes with “negative selling”.
For those who came in late, Avaya has had a horrible year. But now it seems that it has emerged from bankruptcy protection and reduced its debt by $3 billion and flogged its networking business to Extreme Networks.
Avaya said it is now putting plans in place to float on the New York Stock Exchange.
Writing in his bog, Avaya president Nidal Abou-Ltaif slammed Avaya’s competitors for the approach they took to taking advantage of Avaya’s struggles.
“Don’t get me wrong, we’ve always been ready to leverage the weakness of our competition”, he wrote.
“Throughout my time here we’ve and will continue to have a fierce passion for winning and that will never change. The difference between us and some of our competitors is that we’ve always fought fair and we’ve always looked at who should be the true winner in any outcome – our customers.
“Some of our competitors went down the negative-selling route, trying to put Avaya down in the hearts and minds of our customers and partners.
“Not only does this not work, but it’s also left our competitors less confident in their abilities. Result: we’ve beaten them to the punch on key strategic accounts, with customers preferring to do business with people they trust.”
Extreme Networks has completed its takeover of Brocade’s networking business which it claims will take it over the $1 billion revenue threshold.
For those who came in late, the acquisition was first announced in March, came after Broadcom acquired Brocade but wanted to off-load its networking business. Extreme Networks meanwhile wrote a cheque for Zebra’s LAN business and Avaya’s networking bits.
Extreme Networks CEO Ed Meyercord said: “This is an exciting day for Extreme as we have now significantly strengthened our position in the expanding high-end datacentre market with the industry leading solution for enterprise customers. Through a series of synergistic acquisitions, Extreme is now a top player in the enterprise networking industry and expects to generate over $1bn in annual revenues.”
He added that the announcement was not only a significant milestone for our growth strategy, but it also allows Extreme to assist more customers around the globe with end-to-end software-driven solutions to drive their digital transformation initiatives.
Extreme Networks’ share price has risen over 130 percent since the start of the year, giving it a market cap of $1.3 billion.
Avaya is flogging its networking business to Extreme Networks for $100 million.
While Extreme said that it was interested in the deal in March it took a while for the deal to go through because Avaya was asking around to see if it could get more dosh. The deal will close on 1 July.
Avaya is selling off the family silver to help it restructure debts, and wants to focus on unified communications instead.
Extreme wants to take on Cisco and HPE and has also acquired Brocade’s data centre networking so it can cover the data centre core, LAN, campus networks, WANs and security.
Extreme thinks the deal will yield annual revenues which are more than $200 million.