Avaya Tension with Tenovis?

Avaya would appear to be less than happy with their German subsidiary Tenovis. Apparently this is due to the margins Tenovis are achieving – currently believed to be less than eight per cent.

Sources close to Comms Business Magazine say Avaya CEO Don Peterson is cracking the whip and suggesting that Tenovis raise their margin game to around 10-12 % within the next 18 to 24 months.

Avaya bought the former Bosch Telecom division in 2004 from investment team Kohl Kravis Robert (KKR) for approximately $370 million. The deal gave Avaya the number one position in many European markets though had no impact in the UK where both Tenovis and Bosch had achieved very little traction.