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Avaya in Talks With RingCentral to Form Joint Venture

What Happened?

Avaya moved away from the idea of being acquired following news that it is in talks to partner with RingCentral.

This update marks a departure from the speculation in August that Mitel was discussing a merger with Avaya.

However, Avaya’s new talks could still collapse and the company has not yet confirmed its final decision. Avaya CEO Jim Chirico told CRN, “The company does not intend to provide additional updates unless or until it determines that further disclosure is necessary.”

Avaya is now beyond the 30-day window Chirico set for finalizing “strategic alternatives” to resolve Avaya’s financial situation during the company’s August 13 third quarter earnings call.

Source: SoftwareReviews Avaya Unified Communications Scorecard, Accessed September 9, 2019

Our Take

Info-Tech has speculated that Avaya’s might receive late offers from RingCentral or 8x8. It is now becoming likely that Avaya’s final decision will be to form a joint venture with RingCentral.

This will be a good move for RingCentral, with its stock increasing 4.5% following the news. The videoconferencing provider would significantly expand its outreach through Avaya’s global customer market. Indeed, despite the company’s ongoing uncertainty, Avaya announced its new membership with the Industry Council for Emergency Response Technologies.

Moreover, Info-Tech has reported that RingCentral’s teleconferencing service falls short of expectation. Joining with Avaya’s world-leading telephony network could significantly counter this flaw.

Source: SoftwareReviews RingCentral Unified Communications Scorecard, Accessed September 16, 2019

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