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Avaya for Sale: Auction Involves 3 Private Equity Bidders?

Avaya (Stock: AVYA) appears to be up for sale and moving toward auction, and three private equity bidders could be attempting to buy the unified communications technology company, according to multiple reports.

Update, September 12, 2019: Avaya statement on potential company sale.

The latest rumors surfaced via Bloomberg Radio and StreetInsider. Earlier buyout rumors from March 2019 valued Avaya at more than $5 billion, including debt.

According to Bloomberg, potential Avaya bidders may include private equity firms Apollo Global Management LLC, Permira Holdings and Searchlight Capital Partners. Bids are expected at the end of April and the firms may look to make joint offers, the report said.

Avaya Business Journey

Avaya emerged from Chapter 11 bankruptcy in Q1 of fiscal 2018. The company has aggressively pushed from classic hardware and software sales toward cloud-driven recurring revenues and subscription services.

Much of the focus involves unified communications as a service (UCaaS) and Contact Center as a Service. A new Device as a Service (DaaS) offering has also surfaced. A partner push continues, with the Avaya Engage 2020 conference set for February of that year.

The business transformation hasn’t been easy. Avaya’s Q1 fiscal 2019 revenue was $738 million, down about $14 million from Q1 fiscal 2018, according to results disclosed in February 2019. GAAP net income was $9 million, up from $3.2 million in Q1 fiscal 2018. The revenue figures were about $12 million to $37 million below Wall Street’s expectations, Seeking Alpha estimates.

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