Avaya expects Nortel deal to close by end 2009

Avaya expects to double the size of its workforce in Middle East with acquisition of Nortel’s enterprise business

Tags: Avaya IncorporationMergers and acquisitionsNortel Networks CorporationUSAUnited Arab Emirates
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Avaya expects Nortel deal to close by end 2009 Bayer is confident that the integration process will progress smoothly.
By  Roger Field Published  October 27, 2009

Avaya's acquisition of Nortel's enterprise business is expected to be complete by the end of the year.

US-based Avaya, which specialises in network communications, has filed all of the necessary anti-trust requirements around the world and expects "the next guidance" in early November, Michael Bayer, president EMEA, Avaya, told itp.net.

"If all of that continues positively we are going to be the owner of Nortel Enterprise by the end of the year. That is the plan we are working towards," he said.

Avaya, which agreed to acquire Nortel Enterprise Solutions for $915 million in September, is now busy working on integration plans in preparation for the completion of the deal.

Bayer, who is actively involved in the integration plans for the Middle East operations of Nortel Enterprise, said the level of planning made him optimistic that the integration would proceed smoothly, without interfering with day-to-day operations.

"I have done acquisitions before and been acquired before, but the level of preparation and focus and processes makes me confident that it is going to be a very smooth transaction," he said.

"It is also a transaction that is different to a lot of other mergers and acquisitions because the people in Nortel are looking forward to have a new future."

Bayer added that the acquisition of the troubled Canadian business would probably double the number of employees that Avaya has in the Middle East, as well as broadening the reach of the company.

"If you look at what we have published about the main reasons for doing this transaction, it was mainly about installed base.

"Secondly they [Nortel Enterprise] are much more channel centric than we are, especially with the service providers. They have started that journey much earlier than we did so that should give us a better combined reach."

He added that Avaya also believes it has a better services value proposition than Nortel, and will be able to offer "more enhanced services and maintenance services" to Nortel's customers than they are currently used to.

3180 days ago
jon baskin

I saw today that that the closing of the deal to sale Nortel's wireless assets to Ericsson has been delayed. Does this have any impact to timing of the Avaya deal?

3181 days ago
Matt Oshida

This is an interesting perspective on the proposed acquisition. You certainly cover a lot of the reasons why this is actually a good opportunity for those in the arena of Enterprise communications. If you would like more information, you might like to attend the free webinar where the acquisition will be discussed by David Downing of Nortel and Abner Germanow of IDC on November 4. There will be a chance to ask questions at the end. You can register here – http://next.nortel.com/NOR_VCXO/frmRegistration.aspx?bdls=21877

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