Avaya purchases Konftel for $15 Million. What a genius move!

by Jeff Wiener on January 4, 2011

Avaya purchases Konftel for $15Million. What a genius move!

For those of you not familiar with Konftel, they make an excellent beautifully designed conference phone and compete head on with their much much larger rival Polycom.

What a genius move considering the very low purchase price of $15 million, really a rounding error on Avaya’s balance sheet. I can’t imagine all the lost revenue that ends up in Polycom’s coffers by Avaya dealers selling Polycom conference phones. I’m sure way more than $15 million. Not only will Avaya hang onto most of this revenue but this should position them well in their next / new market phase, the introduction of video to their product line-up. I for one would much rather sell an Avaya conference phone with an Avaya phone system, especially one as well priced and functional as the Konftel 300. Conversely, and I’m sure Avaya is aware of this, they will lose conference sales to non Avaya dealers who will now purposely sell something other than Konftel. Big deal. Avaya stands to gain so much. Genius move.

The press release is as follows:

Avaya, a global leader in business collaboration systems, software and services, today announced it has acquired Konftel, a cutting-edge innovator in audio collaboration technology and one of the industry’s leading conference telephone manufacturers for a cash purchase price of approximately US$15 million (based on currency exchange rates on 3 January 2011).

With this move, Avaya enriches its desktop to conference room audio collaboration portfolio and gains access to a breadth of leading-edge technologies and capabilities, including Konftel’s OmniSound® technology, which provides optimal audio performance in collaborative environments.

Avaya intends to leverage Konftel’s product portfolio with Avaya’s multi-modal technologies and user experiences to deliver innovative and differentiated capabilities that reach across Avaya’s platforms, creating common, scalable solutions with streamlined management, compelling economics and an enhanced experience.

“The acquisition of Konftel represents a logical step in Avaya’s drive to lead in business collaboration,” said Alan Baratz, senior vice president and president, Global Communications Solutions, Avaya. “Konftel’s audio conferencing product portfolio and its OmniSound technology will be key elements of our continued innovation in audio and video solutions, including our recently announced Avaya Flare™ Experience.”

Based in Sweden, Konftel provides high-definition audio collaboration devices that range from desktop conference units to conference room systems to large auditorium implementations. The portfolio offers OmniSound’s crystal clear sound quality on multiple communications standards, complementing Avaya’s leadership in Session Initiation Protocol-based endpoints.

“We are excited by this chance to take Konftel’s innovative technology to the next level by joining Avaya, a global leader in business collaboration,” said Peter Renkel, CEO of Konftel. “We see a host of opportunities to create significant business and customer value by combining our businesses and continuing our drive for innovation.”

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Written by: Jeff Wiener. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Identi.ca, or Friendfeed

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