Avaya Buying Radvision for $230M

Avaya Inc. said Thursday it will buy Radvision Ltd. (Nasdaq: RVSN) for US$230 million to enhance its video communications systems capabilities.

The acquisition extends Avaya's reach into business-to-business and business-to-customer videoconferencing. It will also add mobile video and device support capabilities to Avaya's existing unified communications system and extend the firm's global distribution channels.

The transaction values the 20-year-old Israeli company at $11.85 per share. Each company's board of directors has agreed on the deal, which is expected to close within 90 days.

Why this matters
Avaya already added to its videoconferencing capabilities through the acquisition of Sipera Systems Inc. last year. This deal will give it more smarts and customers in the field, additional revenues of around $80 million per year and a stronger product set to take on unified communications system rivals such as Cisco Systems Inc. (Nasdaq: CSCO), which itself splashed out on a videoconferencing acquisition in 2010. (See Cisco Bets $3B on Tandberg and Cisco/Tandberg Gets Final OK.)

For more

• Avaya to Buy Radvision
• Avaya Acquires Sipera
• Avaya Files for IPO
• Avaya's $900M Bid Wins Nortel Auction

— Dan Jones, Site Editor, Light Reading Mobile