The Avaya boards seem to be quiet, or at least, lacking in updates. Any news to share, from either side?
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I'm guessing the $100M bid is as high as they (or anyone else) would be willing to go at this point anyhow. The ROI percentage starts to drop off significantly over that amount. No one wants to spend that kind of cash, then wait 2-5 years, only to see a 10-15% return on their money.
Um... you seem to be forgetting that Extreme could up their bid if someone else jumps in at $110M. They could go as high as they want, although it's unlikely they would bid over $150M.
If Extreme does somehow win the auction (unlikely, since bids are made in increments of only 10% over open, so a bid of 110M would take it - they do not have sufficient cash-on-hand to bid higher) it would set them up as an attractive acquisition target, by a larger player, later in the year/next year.
It won't take that much to buy Avaya. Extreme has around $90 million in cash and most experts value the Avaya networking business around $125M based on ~$250Msales and (negative) it's negative profitability. Most of us at Avaya would love to see the companies combined. An announcement soon would be very welcome.
An Avaya networking employee here. Fingers crossed you win.
What I have heard is we are going to place the first bid, but nobody really expects us to win it. We don't have enough cash on hand for what they are expecting Avaya Networking to go for.
That seems to be a repeating theme at the moment ... weeks have come and gone, and still no formal announcements from either side. It's pretty binary - Someone has to either make a commitment, or call it off.
Announcement was supposed to be yesterday -2/22/2017 - but for some reason didn't happen.