Avaya has entered into an asset purchase agreement with Extreme Networks. Extreme are looking to acquire Avaya’s Networking business in a section 363 sale under the Bankruptcy Code. The value of the transaction is approximately $100 million.
“Several months ago, in the context of optimizing our capital structure, we announced that we were conducting a comprehensive assessment of the various alternatives available to us, including expressions of interest in certain Avaya assets,” said Kevin Kennedy, president and CEO of Avaya.
“After extensive evaluation, we believe that a sale of our Networking business is the best path forward for all stakeholders. It provides a clear and positive path for our Networking customers and partners and enables the Company to focus on its core, industry-leading Unified Communications and Contact Center solutions. Today’s announcement furthers our overall restructuring goals as we position the rest of Avaya for long-term success.”
Kennedy continued, “The possibility of Avaya Networking being part of a pure-play networking company like Extreme Networks would allow greater opportunities for its products and services to thrive and the industry to continue to benefit from our award-winning wired, WLAN and Fabric technology.”