Avaya Will Buy Ubiquity for $141M

By Greg Galitzine

Group Editorial Director

It’s being reported that Avaya (News - Alert) will buy Ubiquity Software Corp. for 74.3 million pounds or about $144 million.

Mickey Tsui vice president of global communications solutions at Avaya, said, “We believe that the addition of Ubiquity’s next-generation software platform to Avaya’s portfolio will help customers and developers enhance the integration of communications technologies and business processes”

Ian McLaren, chief executive of Ubiquity, said, The offer by Avaya marks an important milestone in the development of Ubiquity. We believe that there are strong synergies between Ubiquity's core software platform, service creation framework and applications and Avaya’s portfolio of enterprise products. As part of the Avaya group, we believe that Ubiquity will be well positioned to gain access to Avaya's customer base and the resources to exploit the opportunities we see in the emerging telecommunications marketplace.”

The tender offer has been unanimously recommended by the board of directors of Ubiquity. The purchase is expected to be funded with Avaya’s existing cash resources.

Ubiquity provides deployment platforms, applications, development tools and integration technology for converged voice, video and data services. Their flagship SIP Application Server (SIP A/S

) is deployed with several the world’s largest telecommunications carriers.

According to Yankee Group (News - Alert), the market for SIP-based Application Servers will reach $4.7 billion by 2009. Yankee Group also believes the advent of IP Multimedia Subsystems (IMS

) within carrier IP core networks will further drive the adoption of such products.

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