Avaya Sells Government-Focused Professional Services Arm For $100M


Avaya this week revealed plans to sell its government-focused IT Professional Services consulting group to defense contractor Camber for $100 million.

The deal, which is expected to close within the next 90 days, will see Camber assume all employees, customers and contracts associated with the ITPS consulting group, the companies said. The ITPS group is part of Avaya's federal-focused subsidiary Avaya Government Solutions.

Although Camber will take full ownership of the ITPS consulting arm, Avaya will retain all other services and products in the Avaya Government Solutions portfolio.

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The sale of the ITPS unit shouldn't have an impact on Avaya channel partners, according to an emailed statement from an Avaya spokesperson, who confirmed with Avaya Government Solutions President Mike Paige that channel partners were not involved in offering ITPS services.

Avaya does, however, offer all other Avaya Government Solutions products and services through partners and will continue to do so after the sale, the spokesperson said. Avaya could not confirm the number of partners selling these offerings as of press time.

Avaya Government Solutions offers networking, collaboration and contact center solutions to federal, state and local government organizations. The unit, based in Fairfax, Va., consists largely of Avaya technology gained through its 2009 acquisition of Nortel.

Avaya in November made sweeping changes to its Avaya Connect Partner Program, several of which were designed specifically for partners selling into the federal market. The company, for example, rolled out a new version of Grow Right, its partner growth incentive program, that will evaluate partner revenue growth on a year-over-year, rather than a quarter-over-quarter, basis as it had in the past. Avaya told CRN that change was made primarily to address the seasonality challenge faced by its federal partners.

Avaya said in its first-quarter earnings report this week that its government-related revenue for the three-month period was "essentially flat" with the previous quarter. The company's total revenue for the quarter was $1.16 million, down 6.6 percent year-over-year.

PUBLISHED FEB. 20, 2014