Avaya acquires Tenovis Germany GmbH

Avaya acquires Tenovis Germany GmbH, the parent holding company of Tenovis GmbH & Co. KG, a major European provider of enterprise communications systems and services.

Under the terms of the agreement, Avaya will pay approximately $370 million in cash, as well as assume about $265 million in debt. The company noted that net of Tenovis' expected cash position at closing of $115 million, Avaya's cash outlay will be about $255 million. Avaya said the transaction is subject to customary regulatory approvals and closing conditions.

Tenovis, headquartered in Frankfurt, Germany, provides communications solutions, including telephony, call and contact centers, customer relationship management, messaging, networking and services to companies and public authorities across Europe. The company has more than 5,400 employees and has offices in Austria, Belgium, France, Germany, Italy, Spain, Switzerland and The Netherlands.

The addition of Tenovis makes us #3 in market share in Europe, according to industry analysts. It also substantially diversifies our revenue base. Moving forward, international revenues are expected to account for about 40% of our total revenues - up from 25%. European revenues are expected to nearly triple and grow from about 12% to nearly 30%.

Our leading-edge portfolio of systems and applications, and Tenovis's extensive customer base and sales/service infrastructure, form a powerful combination and a strong platform for Avaya's growth in Europe. With this transaction, we gain the opportunity to generate a higher level of product sales to Tenovis's installed base, to expand relationships with multinational customers operating on both continents, and to win new customers in Europe. Finally, the Tenovis acquisition positions us extremely well to capitalize on the acceleration in IP-PBX adoptions that is expected in Europe.