Avaya Holdings, a leader in Unified Communications as a Service, is making headlines today with its intent to enter into a partnership with global enterprise cloud communications vendor RingCentral.
With this one, the proof is in the pudding, in that Avaya itself rose 11% in premarket trading while RingCentral is also up this morning to the tune of about 6%.
An announcement from the two firms today shows that Avaya will use cloud office services from RingCentral to create Avaya Cloud Office, which will provide, according to the company, – “a full suite of UC, CC, UCaaS and CCaaS solutions to a global customer base.”
“Avaya and RingCentral’s joint investment and commitment to bringing Avaya Cloud Office to market creates an unprecedented opportunity to accelerate the transition to the cloud with attractive economics for our customers and partners,” Avaya CEO Jim Chirico said in a recent press statement. “This also gives us the opportunity to unlock value from a largely unmonetized base of our business as it brings compelling value to our customers and partners. We believe this highly complementary partnership is a game changer that expands the total addressable market for Avaya and creates meaningful value for both Avaya and RingCentral.”
RingCentral Founder, Chairman and CEO Vlad Shmunis is also quoted saying the new partnership “leverages the respective strengths of Avaya and RingCentral to provide a definitive differentiated solution.”
AVYA’s spike moves the company further away from 52-week lows of $9.72, although it still doesn’t touch one-month values peaking over $13 and six-month values up to $20 per share.
RingCentral’s rise is also under its one-month high of over $140, but a 25% rise from the prior close is nothing to sneeze at, with RingCentral now trading around $160 after values near $130 yesterday.
In the deal, RingCentral will reportedly contribute $500 million, with $125 million preferred equity investment, as well as money paid in advance for licensing and other considerations.
