Avaya is acquiring Nortel Enterprise Solutions for $900 million in proceeds to Nortel and an additional pool of $15 million reserved for an employee retention program.
The deal vaults Avaya clearly into the number one position in the enterprise telephony market, with a combined market share of 25 percent. Cisco, after battling Avaya for years for enterprise telephony leadership, now finds itself number two with 16 percent in market share, and facing a significantly more challenging competitor with the combined Avaya-Nortel, says the Yankee Group.
To the extent that the "unified communications" market overlaps directly with the "business phone system" market, the deal also affects market shares for unified communications solutions as well.
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