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Avaya to Buy Radvision for $250M

March 17, 2012

The Web Conferencing Blog : Avaya to Buy Radvision for $250M.

Avaya will buy video conferencing systems provider Radvision for between $200 million and $250 million.

Reports assert that Radvision has been for sale for more than than two years, dating back to the 2009 acquisition of Tandberg by Cisco Systems for $3.3 billion. Tandberg had until that point been Radvision’s largest customer.

Radvision offers a host of video collaboration products, including its Scopia portfolio, as well as management capabilities. Radvision CEO Boaz Raviv spoke about the company’s 20 years in the video conference and UC markets. However, the vendor took a serious hit in 2010, when partner Cisco Systems bought rival Tandberg for $3.3 billion. Radvision has struggled to regain its financial edge since, and while rivals such as Polycom and Cisco have flourished in a booming video collaboration space, Radvision has seen its financial fortunes stall.

In the fourth quarter of 2011, Radvision lost $4.4 million, with revenues dropping to $21.8 million, almost $5 million less than the same period in 2010. During the same quarter, Polycom’s revenues jumped to a record $407 million, more than $100 million more than in the fourth quarter in 2010.

IDC analysts are expecting the video conferencing market to hit $3.2 billion in 2012, a jump from the $2.7 billion in revenues in 2011.

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