Avaya has announced a strategic partnership with RingCentral to expand and further develop its Unified Communications as a Service (UCaaS) deployment with the launch of a new Avaya Cloud Office platform.
The new partnership will enable Avaya to address a broader market while benefiting from RingCentral's advances in conferencing.
The deal also sees RingCentral as an exclusive provider of UCaaS for Avaya, providing a complete suite of private, hybrid and public services to global customers and partners.
The deal also provides for RingCentral's investment of $ 125 million in Avaya shares and an advance of $ 375 million for future payments and certain licensing rights
"This strategic partnership leverages the strengths of both Avaya and RingCentral to provide a definitive, differentiated solution," said Vlad Shmunis, founder, chairman and CEO of RingCentral. "We look forward to bringing RingCentral's leading UCaaS platform to Avaya's installed base of over 100 million users and over 4,700 partners, providing both of our companies with long-term growth opportunities."
In addition, Avaya's Board of Directors has approved a share repurchase program that will authorize the acquisition of up to $ 500 million of Avaya common stock and the repayment of $ 250 million of principal debt under term B loan.
The news comes after a bad year for Avaya, which originally tried to sell itself and then join forces with Mitel before rumors of an acquisition or partnership with RingCentral surfaced in recent weeks, as we reported here.
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