Avaya agrees to sell AGC Networks stake to Essar Group

Written by Businesswire India | Mumbai | Updated: May 31 2010, 16:43pm hrs
Avaya, a global leader in enterprise communications systems, software and services, announced that it has agreed to sell its approximate 59% ownership interest in AGC Networks Ltd. to affiliates of the Essar Group*.

The sale of its AGC Networks stake will enable Avaya to drive additional focus on two of its strategic imperatives: the development of the Avaya business in India and the growth and extension of its channel coverage model through Avayas global channel program, Avaya Connect. AGC Networks remains a key channel partner of Avaya serving customers in the India market, one of the fastest growing enterprise communications markets in the world, and in Australia.

Avaya is focused on delivering fit-for-purpose communications systems to the enterprise market. Avaya currently enjoys a leadership position in the Unified Communications and Contact Center markets in India and globally and has a strong portfolio of data networking solutions and communications maintenance services.

The transaction is subject to customary closing conditions, including those required by Indian law. One such condition is the completion by an Essar Group affiliate of a mandatory open offer made to public shareholders of AGC Networks. Under such open offer, the Essar Group affiliate shall offer to buy at least 20% of the voting capital of AGC Networks. The open offer process is expected to take between 3 and 5 months to complete. During that time, Avaya and AGC Networks will continue to work together to provide industry-leading products and services to customers in India and Australia.

The AGC Networks relationship remains key to Avayas success in India and Australia both through the period of this transaction and beyond, said Jangoo Dalal, Managing Director, Avaya India. In India we work together to serve some of the countrys leading organizations spanning multiple business sectors, and we look forward to continuing to work with AGC Networks as a trusted and well established business partner.

AGC Networks, established in 1986, is a converged communication solutions provider focused on the India and Australia markets. The Essar Group is a multinational conglomerate spanning steel, oil & gas, power, communications, shipping ports & logistics, construction and minerals. Its communications group is focused on the customer care and acquisition market and has a track record of introducing process and technology innovation.

* The agreement for the sale of Avayas shares in AGC Networks Ltd. has been signed with Essar Services Holdings Limited, a division of Essar Global Ltd.