“We are currently awaiting EU approval, the shareholders of the General Assembly on September 28 will be discussed.” September 7, Avaya (NYSE: AV) strategy and technology Karyn Mashima, senior vice president in an interview in Dalian, revealed the absence of an accident, the process of privatization careful AVAYA will be finalized in October this year.
company providing “unified communications” services company formerly Lucent AVAYA Branch Communication.En 2000, it is separated from Lucent, the type of current business with Cisco, Microsoft and Nortel overlap and competition.
This year in June, two of the world’s leading capital investment fund Silver Lake (Silver Lake) and TPG Capital (Texas Pacific) that the total value of about $ 82 billion acquisition of Avaya as long as the shareholders of the Company approved the General Assembly and the European Union, surAVAYA be privatized.
“The growth of the acquired company after Avaya me looking forward to.” To Karyn Mashima, privatization means Avaya can implement longer-term strategy to promote the transition to industry Software.
Transformation software industry
AVAYA Silver Lake and Texas Pacific on the acquisition and privatization are considered as private equity funds active in the communications industry, the performance of the sample. It is also the industry as win-win dinner capital.
Currently, the company AVAYA financially healthy, holding a U.S. $ 829 million in cash, no debt, and 50% of revenue comes from service contracts long terme.En addition, its call center and IP communications, the field strength is relatively forte.Cette year in May, Merrill Lynch had Avaya ideal business to be included in the list.
said that after privatization, Avaya will not always be under pressure during the quarter, the investment is more demanding of cash flows and financial performance, the company can be more flexible, vision of development in the longer term strategic presentation.
“Even more critical to yes, the acquisition of two investment funds Investment Funds AVAYA If Gong, strategies, and existing team Guanli were well supported by this means, if Youhua Bukuaiyingxiang company provides political transition. “said Karyn Mashima.
told reporters during the preparation of privatization, while monitoring, Avaya has also introduced a new program of internal adjustment.
“We will make adjustments She Ji from 16 fields and simplify the process and solve Fang customer service, internal markets, it 系统 etc., Ye Wu Ge Ge aspects of the executive will be the direct responsibility correspondante.Dans privatization is completed, these strategic adjustments will be gradually implemented. “said Karyn Mashima.
“We will, that the specific situation of the company to determine whether layoffs or by the members.” Karyn Mashima did not reveal details of the internal adjustments, but stressed that the company will invest in China and other emerging countries and strengthen the chain of the company and brand building.
added in adaptation, Avaya will be biased to higher value-added industries, such as software and services and high-growth markets such as China.
order to achieve a rapid transformation of the internal adjustment of the same, Avaya M & A efforts to increase investment, and adjust the direction of investments, the value of the industry and the area open to the capital, “We now have a more detailed investment plan.”
“Note that this program but it will start after the completion of privatization, but not before adjustments for privatization.” Karyn Mashima told reporters before the privatization program, Avaya began planning strategic change ” which comes from the response to market changes AVAYA, even without this acquisition, it is also imperative. “
According to Synergy Research Report in 2006, Avaya IP voice communications systems in business transfers and sales to reach 12 consecutive quarters to come, and also the advantage. According to Forst & Sullivan data research, Avaya IP communications in the course of China had 25.6 shares market%.
But the point of view of industry, behind the scenes, the traditional IP communications market is moving towards a crise.Cisco, Nortel, IBM, 3Com, Microsoft and other giants of fierce competition for market share, increased competition leading to lower margins in the culture.
privatization is intended not only to gain more flexibility, it is also more adequate funding to meet the ongoing rapprochement other giants.
“We are 80% of the money in the software, so that our products work better, more reliable and secure, we will integrate with other providers to offer customers competitive applications and distinctive overall service.” Karyn Mashima future competitiveness depends on the success of AVAYA basis of the current transformation.
, told journalists, existing shareholders and management restructuring Yixian AVAYA online course gongsi completed in October of this year, the privatization of the road along zhihou Jiang forward Yi Ji 转型 effects may also need some time to appear very Longa.
China Investment coded
“For high-growth markets like China, we certainly hope to continue to grow the business.” It seems to Karyn Mashima, AVAYA privatization will have on its operations in China to promote.
“As far as we know, TPG is a leading private equity in China, and China have good relations with many companies to promote business development in China, but also in the merger is complete, the most appropriate funding AVAYA, increased grandeefforts to invest in emerging markets like China. “said Karyn Mashima.
“The current market size AVAYA China is also lower, but the growth rate is the fastest.” Avaya Dinesh Malkani, CEO of Chinese companies also consider the expectations of the Chinese market.Dinesh Malkani
in the financial sector, many multinational companies want to improve their skills and services in China, the Olympic Games next year, will more companies and organizations interested in China, “for example, the 2008 Olympic Games, Air China will co-partner for the Games and treatment Olympiquesréservation put significant increase in workload. “
Public reports indicate that Air China was the person responsible at the end of June this year, said in August last year since the implementation of the Centre’s project customer, Air China Monthly Income Centre telephone service sales increased by almost 300%.
In addition, modern office increasingly mobile, the communication should increase, the Chinese government wants to promote software, outsourcing call centers, these trends will support business growth in China AVAYA.
told reporters in the new situation, market strategy in China AVAYA make the appropriate changes.
“The Chinese government is promoting the outsourcing of services, we will further cooperation with the government.” said Dinesh Malkani, Avaya have plans to Shenzhen, Qingdao, Dalian, Chengdu, Tianjin business hub China 5 pilot cities.
Who has already begun to cooperate Dalian.Juin 22, 2006, AVAYA Dalian municipal government and had already signed the city build a call center in the memorandum of Chine.Selon this note, city and government assistance AVAYA in Dalian, Dalian will build in China and North Asia for call centers.
AVAYA one staff member said that it was because the pilot was successful in Dalian, Avaya will continue to promote the other four cities, the future may also be a similar provision in other cities.
“Avaya in the center of the market town was good, once the second largest city in the central city and complete the layout, the radiation can be an enormous force for regional clients.” Staff Avaya said the company is also strengthening the industry in the development of future applications, finance, hotels, and other more specialized areas of application services, the expansion of the industry along the Customer depth.
against is the AVAYA investment in China will also be an overall increase. “For example, a center of Dalian now has 80 employees in fiscal 2008, we plan to double that figure.” said Dinesh Malkani .