AVAYA - FEATURED ARTICLES
December 14, 2011
AVAYA News - Avaya to Acquire Israeli Videoconferencing Company?
By Tracey E. Schelmetic, TMCnet Contributor
Shares in RadVision, a Tel Aviv, Israel-based provider of products and technologies for videoconferencing, video telephony, and converged voice, video and data over IP and 3G networks, are trading sharply higher today, based on the report by Globes that the company is in “advanced talks” to be acquired by Avaya for $200 million, Forbes is reporting today. RadVision solutions support SIP and H.323, as well as ISDN and 3G wireless. The company was founded in 1992.
According to the Globes article, RadVision has been seeking a buyer to stem its troubles since its largest customer, Cisco (News - Alert), acquired rival video conferencing company Tandberg for $3.3 billion back in 2009. RadVision has been losing money: revenue totaled $56.2 million in January-September, which is 18.2 percent less than in the corresponding period of 2010. The company's net loss nearly quadrupled to $19 million. The company's fourth quarter outlook is grim, as well: $18 million in revenue, 31 percent lower than for the corresponding quarter, and a net loss of $6.8 million.
This is not RadVision's first flirtation with a buyer. A year ago, the Israeli company was reportedly in talks to be acquired by Hewlett-Packard (News - Alert) (HP), but those talks ended when there was no agreement reached on a price tag (and HP has been struggling with its own problems as of late). Globes notes that it's possible that other companies, in addition to Avaya, will open talks to acquire RadVision.
Forbes notes that RadVision's stock is up $1.42, or 16.9 percent, to $9.84 today; since November 29, the stock is up 108 percent.
Tracey Schelmetic is a contributing editor for TMCnet. To read more of Tracey's articles, please visit her columnist page.
Edited by Jennifer Russell