Avaya has announced $600M in financing, which it will invest within the next 12 months.
Upsized from the previously announced sum of $500 million, the leading contact center technology provider aims to harness the increased funding to upgrade its business model.
Indeed, Kieran McGrath, Chief Financial Officer at Avaya, stated:
We are pleased with the successful execution of this financing. This funding supports and accelerates our business model transformation and addresses our convertible notes maturing in June of next year.
While the vendor did not release many details of its investment plans, its model currently focuses on supporting clients in moving from on-premise technology to its Avaya OneCloud portfolio.
Often, it kickstarts this process with CPaaS, supporting clients in migrating to the cloud for digital channel transformation, as insinuated in a recent CX Today feature.
This tactic enables simple integrations that pave the way for an omnichannel contact center and the introduction of conversational AI to combat rising call volumes.
Following such strategies allowed Avaya to secure 75 percent of its bookings from its OneCloud portfolio – as it repositions from a historic one-time revenue model to a recurring alternative.
Yet, as contact centers move to the cloud, Avaya's competition increases. The significant $600M financing may enable Avaya to stay at the forefront of the industry.
Of course, that is the goal. As Jim Chirico, President, and CEO at Avaya, stated during a recent earnings call: