About Avaya Inc.

Avaya helps to tie the corporate world together. The company's communication equipment and software integrate voice and data services for customers including large corporations, government agencies, and small businesses. Its office phone systems incorporate Internet protocol (IP) and Session Initiation protocol (SIP) telephony, messaging, web access, and interactive voice response. Avaya also offers a wide array of consulting, integration, and other managed IT services. More than half of its sales are in the US. In 2017 the company filed for Chapter 11 bankruptcy to deal with a heavy debt load.


Avaya filed for protection under Chapter 11 bankruptcy in January 2017 as it sought to reduce its debt. The company took on debt when it was acquired by Silver Lake Partners and TPG Capital in 2007. At the time of the transaction, Avaya focused on providing telecommunications hardware. Since then many of the tasks handled through hardware have shifted to software, a trend that has had a negative impact on networking hardware companies like Avaya. As a result, Avaya has had increasing difficulty in meeting its debt obligations. The company arranged $725 million in financing, underwritten by Citibank, to get it through the bankruptcy proceedings.

In April 2017 Avaya filed a restricting plan with the bankruptcy court. The company would reduce its pre-filing debt by $4 billion and secured creditors would own 100% of the company's shares, according to the plan.

Avaya also agreed to sell its networking business to Extreme Networks for about $100 million. The deal was expected to close by the middle of 2017.


Avaya divides its operations across three segments. Two of the segments -- Global Communications Solutions (GCS; about 40% of sales) and Avaya Networking (about 5% of sales) -- make up the company's Enterprise Collaboration Solutions product portfolio. The third segment is Avaya Global Services (AGS; more than half of sales).

GCS offers business collaboration and communications software used to make IT infrastructure for communications contact centers. Avaya Networking makes Ethernet switches, routers, a virtual private network technology products, while AGS offers IT consulting and advisement services.

Geographic Reach

Avaya operates through about 178 leased facilities and two owned facilities spanning some 58 countries. It has 11 primary research and development facilities in Canada, China, Germany, India, Ireland, Israel, Italy, and the US.

Customers in the US buy 54% of Avaya's products, followed by Europe with 26%, Asia-Pacific at 11%, and Canada and Latin America, 9%.

Sales and Marketing

About a quarter of Avaya's sales were made directly in 2015, and the company's sales strategy has emphasized building its channel partnerships. The company continues to offer traditional communications equipment with an eye toward migrating legacy voice network equipment to IP-based systems.

Financial Performance

Avaya's revenue slide continued in 2015 (ended September), dropping 7% to $4 billion. The company has lower sales through all its market all geographic segments. Sales for its legacy product continued to fall in 2015 while currency exchange rates also reduced revenue.

While Avaya has lost money for nine out of the past 10 years it has narrowed losses in the last two years. It reported a loss of $144 million in 2015, compared to a $231 million loss in 2014.

Cash flow from operations rose to $215 million in 2015 from $40 million in 2014.


Avaya sold non-core businesses and released a steady stream of products and services that expanded its cloud computing and mobile offerings.

The company sold its IT Professional Services business for $101 million as well as the Technology Business Unit (for $14 million), which had been acquired with RADVISION Ltd.

In 2017 the company's recurring revenue, a key measure of software-as-a-service, had increased to almost 60% of the total, a high for the company. Revenue from software and services was about 80% of the total, another record for Avaya.

Should the company's bankruptcy plan be approved and implemented, it should give Avaya room to maneuver by investing in research and development in software and services as well as sales and marketing efforts. The sale of its networking business would provide an infusion of cash while divesting the unit with the fastest decline in revenue.

Mergers and Acquisitions

Avaya boosted its cloud offerings, in part, through acquisitions. In 2015, it bought Esna, a provider of cloud-based unified communications. Esna operate as a wholly-owned Avaya subsidiary. The move helps position Avaya as a provider of mobile and cloud-centric collaboration technologies.

The company previously acquired IT Navigator Ltd., a global provider of cloud, social media, and management products and services. The integration of their portfolios enhanced Avaya's cloud as well as its unified communication and contact center products.

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Avaya Inc.

4655 Great America Pkwy
Santa Clara, CA 95054-1233
Phone: 1 (908) 953-6000
Fax: 1 (908) 953-7609


  • Employer Type: Subsidiary
  • President and CEO: Kevin J. Kennedy
  • Chairman: Charles H. Giancarlo
  • President and CEO: Kevin J. Kennedy
  • 2015 Employees: 10

Major Office Locations

  • Santa Clara, CA

Other Locations

  • Irvine, CA
  • San Francisco, CA
  • Sherman Oaks, CA
  • Simi Valley, CA
  • Greeley, CO
  • Highlands Ranch, CO
  • Superior, CO
  • Westminster, CO
  • North Haven, CT
  • Bonita Springs, FL
  • Doral, FL
  • Fort Lauderdale, FL
  • Cary, IL
  • Schaumburg, IL
  • Newport, KY
  • Billerica, MA
  • Chelmsford, MA
  • Salisbury, MD
  • Durham, NC
  • Basking Ridge, NJ
  • Lincroft, NJ
  • Manchester, NJ
  • Amityville, NY
  • Depew, NY
  • Huntington, NY
  • Melville, NY
  • New York, NY
  • Worthington, OH
  • Oklahoma City, OK
  • Lake Oswego, OR
  • Greenville, SC
  • Sioux Falls, SD
  • Coppell, TX
  • Denton, TX
  • Arlington, VA
  • Fairfax, VA
  • Herndon, VA
  • Bellevue, WA
  • Dunbar, WV
  • Barueri, Brazil
  • Rio De Janeiro, Brazil
  • Sao Paulo, Brazil
  • Serra, Brazil
  • Serra Pelada, Brazil
  • Burnaby, Canada
  • Calgary, Canada
  • Kanata, Canada
  • Nepean, Canada
  • Saint-Laurent, Canada
  • Vancouver, Canada
  • Guangzhou, China
  • London, England
  • Bengaluru, India
  • Gurgaon, India
  • Mumbai, India
  • Pune, India
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