Mergers & Acquisitions

Mergers & Acquisitions

July 07, 2011

Glowpoint Receives Nearly $1.6 Million in Financing; Completes Acquisition of Avaya Managed Service Assets

Managed video services provider Glowpoint, Inc. has received nearly $1.6 million in equity financing according to recent SEC (News - Alert) regulatory filings. The company also announced that it completed a transaction to acquire certain assets used by Avaya in its "Managed Service for Video" offering on June 30.

The company, which made $32,000 in profit on $7 million in revenue for the last quarter, is a provider of telepresence and video conferencing management services.

As consideration for the Avaya assets, Glowpoint (News - Alert) issued 769,049 common shares to the company. The assets acquired include video conferencing and telepresence endpoints as well as network infrastructure which may be utilized to deliver cloud managed video services to enterprise customers.

The Avaya (News - Alert) assets will be deployed and integrated into the Glowpoint Open Video cloud architecture to offer enhanced capacity for the company's Cloud Managed Video Services for enterprise customers. Glowpoint and Avaya had previously announced a Master Services Agreement to collaborate on the development and delivery of cloud managed services.

As part of the strategic partnership, Glowpoint and Avaya will develop and offer managed services that support multi-vendor/cross-protocol video environments. The agreement utilizes Glowpoint's Open Video cloud architecture along with Avaya's experience in delivering unified communications and contact center, data solution and related services to businesses and organizations through its channel partners.

"At Avaya, we provide a full range of communications managed services," said Ed Nalbandian, operations services vice president for Avaya. "Based on the demand we are seeing from our customers, we regard managed services for integrated video as a critical part of our overall unified communications strategy. We believe collaborating with Glowpoint will allow us to offer customers and channel partners an extremely compelling and competitive solution."

"This relationship combines the leaders in the unified communications market and the managed video services market, which I believe is very powerful in this new era of mass video communications adoption," said Joe Laezza (News - Alert), president and CEO of Glowpoint. "We are thrilled to have the opportunity to enhance Avaya's video managed service capabilities with our open video cloud managed services portfolio."

Edited by Rich Steeves

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