Avaya Buys Nortel's IP-PBX Business for $900M

[qi:gigaom_icon_voip] The piece-by-piece sale of fallen Canadian giant Nortel continues. Avaya, an enterprise telephony company that was carved out of telephony’s fallen star, Lucent Technologies, has bought Nortel’s PBX business for $900 million in cash, the two companies announced today. Initially Avaya had bid $475 million for the business, but raised its offer. Avaya is going to spend another $15 million for an employee retention program. Verizon recently filed a motion to block this deal on the grounds that it doesn’t take into account the current installed base of Nortel equipment. What do you think? Did Avaya get a good deal or did they overpay for a legacy business that is slowly shrinking and losing ground to Cisco and upstarts who are offering open-source PBX options?


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