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Nortel purchase could help Avaya toward an IPO, CEO says

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Note: The Skinny blog is written by Rick Smith, editor and co-founder of Local Tech Wire and business editor of WRAL.com.

RESEARCH TRIANGLE PARK, N.C. – Privately held Avaya could return to the public markets now that it has closed on the $900 million acquisition of Nortel’s Enterprise business unit, Avaya’s top executive told Reuters.

In an interview following the close of the Nortel deal on Friday, Avaya Chief Executive Officer Kevin Kennedy said the New Jersey-based maker of telecommunications gear will benefit from in two key ways from the deal:

• Increased market share
• Now more competitive with Cisco
• An “exit” for its private equity backers

"We believe the company will have greater market share, it'll be more competitive, and from a multiple perspective, on exit, a greater opportunity for either greater gain or removal of risk," he told Reuters.

However, Kennedy is also being cautious about the overall economy.

"We believe that the economy will be some place between flat and up, cautiously up, I'd say," he said. "But we are also managing the company as though there could be a setback."

For the complete Reuters report, click here.

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The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…