Empowers Avaya’s global sales &
partner network with RingCentral’s leading technology platform
RingCentral, Inc. (NYSE: RNG), and Avaya Holdings Corp (NYSE:
AVYA) today announced the closing of their previously announced
strategic partnership.
Avaya and RingCentral will introduce a new solution, Avaya Cloud
Office by RingCentral (“Avaya Cloud Office”), which will be the
exclusive public Unified Communications as a Service (“UCaaS”)
solution marketed and sold by Avaya. Avaya Cloud Office combines
RingCentral’s leading UCaaS platform with Avaya’s technology,
services and migration capabilities to create a highly
differentiated UCaaS offering. The companies expect to launch Avaya
Cloud Office in the first quarter of calendar 2020.
“Our game-changing partnership with RingCentral and the
introduction of Avaya Cloud Office have generated tremendous
excitement with our partners and customers,” said Jim Chirico,
Avaya President and CEO. “Avaya Cloud Office is a continuation of
our stated strategy to be a cloud-first company, and we believe the
addition of this UCaaS solution to our portfolio is a key
differentiator that provides customers with a seamless journey to
cloud communications. We, together with our global partner
community, are excited to work with RingCentral in bringing this
unique solution to market, building on the highly complementary
strengths of our two industry-leading companies.”
“As a leader in cloud communications, we’re laser-focused on
bringing the power of the cloud to more enterprise customers,” said
Vlad Shmunis, RingCentral Founder, Chairman, and CEO. “With the
growth of the mobile and distributed workforce, cloud
communications solutions can deliver the capabilities enterprises
need to effectively connect with customers, partners, and
employees. This strategic partnership accelerates the transition of
one of the world’s largest on-premise unified communications
installed bases to the cloud. We’re excited for the long-term
benefits this partnership will bring to customers and partners, as
well as the growth opportunities that we expect it will drive for
both our companies.”
“The strategic partnership is a winning combination for both
Avaya and RingCentral, and it has the potential to disrupt the
business communications industry as Avaya accelerates its
transformation to the cloud. Careful consideration clearly went
into designing the partnership framework to ensure maximum benefits
for customers, partners, and both Avaya and RingCentral,” said Elka
Popova, Vice President and Senior Fellow, Information and
Communications Technologies, Frost & Sullivan.
RingCentral is contributing $500 million to its partnership with
Avaya, including a $125 million investment of 3% redeemable
preferred equity that is convertible at $16 per share and an
advance of $375 million primarily in stock for future payments and
certain licensing rights.
Forward-Looking Statements
This press release contains “forward-looking statements,”
including but not limited to, statements regarding the anticipated
benefits of and activity under the strategic partnership between
RingCentral and Avaya, including the ability to create long-term
growth opportunities for RingCentral and/or Avaya. These
forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially, including risks
related to the parties’ ability to successfully perform their
obligations under the commercial arrangement, the parties ability
to successfully develop and execute the envisioned jointly
developed programs, technology and automation, the ability to
successfully market, sell and transition customers to Avaya Cloud
Office, as well as those risks and uncertainties included under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations,” in RingCentral’s
Form 10-Q for the quarter ended June 30, 2019, and in Avaya’s Form
10-K for the year ended September 30, 2018 and subsequent 10-Qs,
each filed with the Securities and Exchange Commission; and in
other filings RingCentral and Avaya make with the Securities and
Exchange Commission from time to time.
All forward-looking statements in this press release are based
on information available to RingCentral and Avaya as of the date
hereof, and we undertake no obligation to update these
forward-looking statements, to review or confirm analysts’
expectations, or to provide interim reports or updates.
About RingCentral
RingCentral, Inc. (NYSE: RNG) is a leading provider of global
enterprise cloud communications, collaboration, and contact center
solutions. More flexible and cost-effective than legacy on-premises
systems, the RingCentral platform empowers employees to work better
together, from any location, on any device, and via any mode to
serve customers, improving business efficiency and customer
satisfaction. The company provides unified voice, video meetings,
team messaging, digital customer engagement, and integrated contact
center solutions for enterprises globally. RingCentral’s open
platform integrates with leading business apps and enables
customers to easily customize business workflows. RingCentral is
headquartered in Belmont, California, and has offices around the
world.
©2019 RingCentral, Inc. All rights reserved. RingCentral and the
RingCentral logo are trademarks or registered trademarks of
RingCentral, Inc.
About Avaya
Businesses are built on the experiences they provide, and every
day millions of those experiences are built by Avaya (NYSE: AVYA).
For over one hundred years, we’ve enabled organizations around the
globe to win - by creating intelligent communications experiences
for customers and employees. Avaya builds open, converged and
innovative solutions to enhance and simplify communications and
collaboration - in the cloud, on-premise or a hybrid of both. To
grow your business, we’re committed to innovation, partnership, and
a relentless focus on what’s next. We’re the technology company you
trust to help you deliver Experiences that Matter. Visit us at
www.avaya.com.
Source: Avaya Newsroom
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version on businesswire.com: https://www.businesswire.com/news/home/20191031005575/en/
Investor Relations Contacts: Ryan Goodman, RingCentral
(650) 918-5356 Ryan.Goodman@ringcentral.com
Michael McCarthy, Avaya (919) 425-8330
mikemccarthy@avaya.com
Media Contacts: Mariana Kosturos, RingCentral (650)
562-6545 Mariana.Kosturos@ringcentral.com
Forrest Monroy, Avaya (669) 242-8122 fwmonroy@avaya.com
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