Avaya has announced in a letter sent to March 9th that it has entered into an Asset Purchase Agreement with Extreme Networks in an effort to sell the Networking business for $100 million USD. The letter is included below.
Avaya's Letter to Customers RE: Avaya Networking
Today we announced that we have entered into an Asset Purchase Agreement (APA) with Extreme Networks to sell our Networking business in a transaction valued at approximately US $100 million, subject to adjustments.
Completion of the transaction is subject to an auction process, in which other companies will have the opportunity to bid for Avaya’s Networking business, as well as regulatory approval and customary closing conditions. The transaction is expected to close by 30 June 2017, the end of Avaya’s fiscal third quarter 2017.
Since May 2016, the Avaya management team and Board have been working with advisors to determine the best options to improve our balance sheet, including monetizing certain assets. After extensive evaluation, we have determined that a sale of the Networking business unit is the best path forward for all of our stakeholders. If completed, a sale would provide a clear positive path forward for our Networking customers and partners, and would enable Avaya to focus on its core, industry-leading Unified Communications and Contact Center solutions. It also advances our overall restructuring goals as we position the rest of Avaya for long-term success.
This agreement is proof of the tremendous value the Avaya Networking portfolio delivers our customers and partners around the globe. I want to emphasize that Avaya’s Networking business is healthy and our operations are strong. We have experienced tremendous momentum over the past year and we continue to introduce innovative new products and solutions to market:
• Nearly 1,000 secure Fabric deployments that deliver simplicity and automation to customers across the globe.
• Mobile Edge portfolio, comprising WLAN, wired and secure network access products, is driving strong year-over-year growth.
• ‘Securing the Everywhere Perimeter’ solution addresses security as a No. 1 top-of-mind issue.
• Introduction of our first cloud networking solution garnered great interest in the market.
These open, automated Networking solutions will continue to enable Avaya engagement solutions to deliver the seamless, intelligent experiences that can help our customers grow and thrive in a smart connected world. Avaya Networking expects to continue to conduct business as usual until the auction process and subsequent transaction process are complete.
We will continue to sell the entire Avaya Networking portfolio of products and solutions and all existing bids, quotes and customer support agreements will continue to be honored. We are fully committed to providing you with the same innovative products and industry-leading service you have come to expect from us. We will also sign a reseller agreement with Extreme to ensure business continuity for our customers after the transaction is complete.