So after much speculation and jostling for position Avaya has signed agreements to purchase Nortel’s enterprise solutions business for $475 million USD a bargain even considering the current economic climate.
It will be interesting to see what happens as the two manufacturers share some common distribution for the dealer channel in Europe, in some cases this makes the acquisition easier but Avaya will need to be careful to ensure that one plus one does not end up equalling one. With care this should see Avaya being able to widen their sales reach right across Europe and beyond.
There should be some manufacturers who will be sitting up and taking notice such as Cisco, Siemens and Alcatel-Lucent as this new combined entity may push some of them off top spot in some European countries.
We wait to see if the Nortel name survives and what will be the consolidated product range in a few years time.