After hanging a 'for sale' sign on its structured cabling business more than a year ago, Avaya has sold its Connectivity Solutions (ACS) arm to CommScope in an $US263-million deal.
CommScope’s bread and butter is in broadband coaxial cable for Hybrid Fibre Coaxial (HFC) applications.
The Avaya ACS division would complement CommScope’s offerings and brings enhanced global opportunities to the company in the enterprise LAN business, the company said.
"(The acquisition) is something that will make us both stronger in the long run. It is very much a win-win situation," spokesperson for CommScope, Betsy Lambert, said.
Avaya ACS customers could rest assured that as CommScope took over, the company intended to continue to support and develop the ACS Systimax structured connectivity solutions, Lambert said.
The ACS Systimax offering is a single network cabling solution that integrates voice, video and data on one network.
Lambert said that the company anticipated little changes in terms of personnel and operation.
Despite retaining a leadership position within the structured cabling spectrum, Avaya has been actively searching for a buyer of ACS since February 2002.
Spokesperson for Avaya, Renaldo Juanso, said ACS made a nice complement to CommScope and the move to sell the division was a strategic one.
"This is strictly another move in a series of strategic moves that the company has made to continue to drive its focus on its core businesses, which are Internet Protocol [IP] telephony and services," Juanso said. "Connectivity falls outside of that scope."
The move is a smart one as far as Roberta Fox is concerned.
Fox, president and founder of Fox Group Consulting, said that it became apparent last year that Avaya was refocusing its efforts when it broke the company into four divisions - IP telephony taking the top priority and services following closely behind.
She said that despite the concentration on IP, the cabling market in general had been one of the hardest hit by capital cuts.
Avaya could now float a lot of R&D with its $US263-million check, she said.