World VoIP NewsVoIP industry leader Avaya looks forward for new acquisitions in Israel  VoIP industry leader Avaya looks forward for new acquisitions in Israel

VoIP industry leader Avaya looks forward for new acquisitions in Israel


VoIP industry leader Avaya looks forward for new acquisitions in Israel
The industrial giant of VoIP technology Avaya has commenced the discussions and negotiations to acquire video conferencing solutions manufacturer Israel headquartered company Radvision Ltd. for provisional amount $200 million.
The acquisition of RadVision would bring up Avaya to a new layer and horizon of a business, where enterprise would compete against Cisco Systems Inc. and Polycom Inc.. Nevertheless, it cannot be ruled out that other prominent VoIP industrial players will open discussions in order to acquire RadVision. Zohar Zisapel possess more than 26 percent of RadVision and his brother, Yehuda, owns 6.3 percent. RadVision's share price just jumped nearly 10 percent within ten days’ time period. The company's business has been going across quite difficult times. Revenue indicators shown up the $56.2 million in January-September being more than 18 percent less than in the corresponding period of 2010, and its net loss grown almost four times to overall $19 million. The company fourth quarter indications are equally grim: $18 million revenue, 31 percent less than for the corresponding quarter, and a net loss of $6.8 million. This is not the first time that the Zisapels have been in discussions to sell Radvision. Dedicated negotiations with Hewlett Packard Co. a year before dropped down due to a disagreement on the price. Most of RadVision's difficulties are imposed because of the acquisition by its largest customer, Cisco, of Norwegian rival Tandberg for $3.3 billion in 2009. To cover up for the provisional loss in revenue, RadVision bought some of the assets of its Italian OEM partner Aethra for $10 million in first quarter 2010. The acquisition of Aethra's end-user equipment provided RadVision an end-to-end video conferencing applications. The acquisition has so far failed to compensate for the loss of Cisco, and RadVision has been losing money ever since. RadVision's share price was cut as twice from the beginning of the year until the December race. Its market drop to a lowest indicator of $88 million -- less than its cash reserves of $92.5 million at the end of third quarter 2011. The share price rose 1.3 percent in early trading today to $8.53, giving a market cap of $160 million, after rising 16.1 percent yesterday. The share price rose 13.4 percent on the TASE today to NIS 31.15. Recently RadVision has announced that Sydney-based general practice education and training provider GP Synergy Ltd. had deployed the company's video collaboration solution RadVision did not reveal the financial details of the deal. In Israel, Avaya sells call centers to telecommunications carriers. Customers are HOT Telecommunication Systems Ltd. and Partner Communications Ltd. , Bezeq International Ltd. All the financial and market performance indicators from Avaya's IP telephony solutions to mid-sized companies, and sales have been good. Avaya collaborated with AudioCodes Ltd. on VoIP solutions for almost decade.


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