Following a nomination from RingCentral, Avaya has announced it is appointing Jill Frizzley to its Board of Directors with immediate effect.
Ms Frizzley has more than 20 years of experience on boards counselling on financial restructuring, mergers and acquisitions.
In accordance with its strategic partnership with Avaya, the appointment followed a proposal by RingCentral. Avaya has also stated it “remains committed to a strategic partnership with RingCentral”.
The strategic partnership focuses on the two firm’s shared product: Avaya Cloud Office powered by RingCentral, launched in 2020.
Alan Masarek, Chief Executive Officer, Avaya, stated:
“I look forward to working closely with Jill and benefitting from her deep expertise as we continue taking steps to strengthen Avaya for long-term success.”
In a press release delivered to the financial markets, Avaya announced the change, together with the carefully worded news about disclosing “certain business information that it confidentially shared with certain of its financial stakeholders”.
Information for Avaya Stakeholders
Although publicly disclosed, the information was not directly available in the press release. It is known, however, that the information was distributed with reference to talks with financial stakeholders to find a resolution concerning the company balance sheet and keeping Avaya navigated toward long-term prosperity.
Masarek confirmed: “We are pleased to remain engaged in constructive discussions with all financial stakeholders to enhance our capital structure, increase liquidity and accelerate our investment in innovative products and solutions.”
Avaya’s CEO spoke explicitly about the steps being taken and said: “Avaya benefits from an iconic brand, massive partner ecosystem and a truly global footprint, and we are confident the steps we are taking are in the best interest of our business and our stakeholders.”
Strategic Partnership with RingCentral Since 2019
Avaya and RingCentral announced their strategic partnership —touted as the most talked about of the year — in November 2019. Following the news, the pair announced its solution Avaya Cloud Office by RingCentral, designed as a flagship UCaaS for Avaya.
At the time, RingCentral put in $500 million for the partnership with Avaya on top of a $125 million investment of 3% redeemable preferred equity (convertible at $16 per share) plus an advance of $75 million in stock covering subsequent payments and licensing.
However, back in August this year, UC Today reported that Avaya’s had dropped from $732 million to $577 million and removed CEO Jim Chirico. A further setback came in the form of a $600 million loan being cast into doubt after it was alleged the company might have undercut its earnings forecast by 60 weeks after borrowing the money.
Avaya has hinted at removing several products by blurring some out from a business update slide deck to streamline its portfolioAvaya has hinted at removing several products by blurring some out from a business update slide deck. Avaya’s share price fell a third when the NYSE opened on the day of the reveal.
Avaya’s Positive Outlook
Despite setbacks, Avaya has retained a buoyant outlook, with CEO Masarek stating in an exclusive interview on UC Today News on 30th August, citing the firm’s previous quarter. He said: “In this last June 30th quarter, we added 92 customers with contracts with TCVs greater than a million dollars. It just gives you an example, no one else in the industry has added a number anywhere close to 92 million-dollar TCV deals. It just sort of speaks to the power of this enterprise base and what Avaya can be.”
He added: “We just need to continue to invest in our products, take care of our customers drive forward — again the existing base and new base — and we’re going to do just fine.”
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