Tag Archive for Merger

Avaya LBO Buzz

Avaya is back in the news. Followers of the Bach Seat will recall that Avaya declared bankruptcy in 2017. Now the buzz is that Santa Clara, California-based telecommunications equipment and software firm is considering a leveraged buyout offer.

Avaya logoReports are circulating that Avaya’s (AVYA) board of directors is evaluating an offer from an unnamed private equity firm. Reportedly the offer values the Lucent spinoff at more than $20 per share, people in the know told Reuters. The private equity firm values Avaya at more than $5 billion, including $3.2 billion in debt.

Avaya is one of the world’s largest providers of telephony systems. It was spun off from Lucent Technologies Inc in 2000, which used to be part of AT&T (T). The LBO comes 15 months after Avaya emerged from bankruptcy protection, with a $8.3 billion debt legacy from a previous leveraged buyout by private equity firms TPG Capital and Silver Lake in 2007.

unified communications as a serviceAvaya has tried to shift its revenue model to focus on cloud-based communications solutions with recurring software and subscriptions fees and not its traditional hardware business. Its legacy business is becoming more commoditized and dated. Much of Avaya’s new focus involves cloud services like unified communications as a service (UCaaS) and Contact Center as a Service (CCaaS). A new Device as a Service (DaaS) offering has also surfaced.

Avaya’s contact center business has also attracted acquisition interest in the past from private equity firms, including Clayton Dubilier & Rice LLC, Hellman & Friedman LLC, and Permira Advisers LLP. Hellman & Friedman and Permira own Genesys an Avaya competitor.

As of September 2018, Avaya had about 8,100 employees worldwide, including 2,800 in the U.S.

Private equity firms have recently focused on communications businesses. Among those companies are Aspect Software, Mitel,  and PGi, each privately held by such firms. Note, too, that Polycom had been a Siris Capital property until its recent acquisition by Plantronics.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Reducing Your LinkedIn Risks

Reducing Your LinkedIn RisksMicrosoft’s recent purchase of LinkedIn has pushed the struggling ersatz professional networking site back into the limelight. There is plenty of speculation why Microsoft (MSFT) purchased the site for over $2.6 billion. Undoubtedly it has to do with LinkedIn’s (LNKD) cache of over 430 million online users. Whatever Redmond’s designs are, now is probably a good time to check LinkedIn security to reduce your LinkedIn risks.

LinkedIn logoAttackers have long used social networking as part of their reconnaissance activities. They cull personal information posted on the site to craft targeted attacks that have a higher chance of succeeding. The cyber-criminals rely on the fact that people tend to trust people within their personal network.Their targets are more likely to fall for a spear phishing email if it appeared to come from a fellow member. The victims would also be more likely to visit a website if a member of their network suggested it.

LinkedIn risks

The fake LinkedIn profiles “significantly increase” the likelihood that these social engineering attacks will work according to research by Dell SecureWorks. The SecureWorks article describes how attackers use fake LinkedIn profiles. Most of these fake accounts follow a specific pattern:

  1. LinkedIn RisksThey bill themselves as recruiters for fake firms or are supposedly self-employed. Under the guise of a recruiter, the attackers have an easy entry point into the networks of real business professionals. Real recruiters already use the service as a way to find potential candidates. LinkedIn users expect to be contacted by recruiters, so this ruse works out in the scammers’ favor.
  2. They primarily use photos of women pulled from stock image sites or of real professionals. Many of the fake LinkedIn accounts use unoriginal photographs. Their profile photos were found on stock image sites, other LinkedIn profiles, or other social networking sites.
  3. Attackers copy text from profiles of real professionals. They then paste it into their own. The text used in the Summary and Experience sections were usually lifted verbatim, from real professionals on LinkedIn.
  4. They keyword-stuff their profile for visibility in search results. Fake LinkedIn accounts stuff their profiles with keywords to gain visibility in to specific industries or firms.  Northrup Grumman and Airbus Group are popular.

The primary goal of these fake LinkedIn accounts is to map out the networks of business professionals. Using these fake LinkedIn accounts, scammers can establish a sense of credibility among professionals to start further connections. The fake network was created to help attackers target victims via social engineering.

disguise it as a résumé applicationIn addition to mapping connections, scammers can also scrape contact information from their connections. The attackers collect personal and professional email addresses as well as phone numbers. This information could be used to send spear-phishing emails.

LinkedIn cyber-thieves use TinyZbotmalware (a password stealer, keystroke logger, multifunctional Trojan) and disguise it as a résumé application. The Dell researchers advise organizations to educate their users of the specific and general LinkedIn risks in their report:

  • Avoid contact with known fake personas.
  • Only connect with people you know and trust.
  • Use caution when engaging with members of colleagues’ or friends’ networks that they have not verified outside of LinkedIn.
  • When evaluating employment offers, confirm the person is legitimate by directly contacting the purported employer.

Reduce your risks

There are a few ways users can identify fake LinkedIn accounts:

  • search engineDo a reverse-image search. Tineye.com offers a browser plugin or use Google’s Search by Image to confirm the in picture is legit.
  • Copy and paste profile information into a search engine to find real profiles.
  • If someone you know is already connected with one of these fake accounts, reach out to them and find out how they know them.
  • If you suspect that you’ve identified a fake LinkedIn account, you should report it.

LinkedIn told Panda Security:

We investigate suspected violations of our Terms of Service, including the creation of false profiles, and take immediate action when violations are uncovered. We have a number of measures in place to confirm authenticity of profiles and remove those that are fake. We urge members to use our Help Center to report inaccurate profiles and specific profile content to LinkedIn.

As always, it pays to be careful with information that you share online as it can save you many potential problems in the future.

Here are some tips to keep your LinkedIn experience as secure as possible. Update Privacy Settings to understand how you’re sharing information. Smart options include:

  • ApathyTurn your activity broadcasts on or off. If you don’t want your connections to see when you change your profile, follow companies or recommend connections, uncheck this option.
  • Select what others can see when you’ve viewed their profile. When you visit other profiles on LinkedIn, those people can then see your name, photo, and headline. If you want more privacy, display anonymous profile information or show up as an anonymous member.
  • Select who can see your connections. You can share your connections’ names with your other first-degree connections, or you can make your connections list visible only to you.
  • Change your profile photo and visibility. You can choose to have your photo displayed only to your first-degree connections, only to your network, or to everyone who views your profile.

Opt into Two-Step Verification to prevent other people from accessing your account. LinkedIn lets members turn on two-step verification for their accounts. This will require an account password and a numeric code sent to your phone when you attempt to sign in from a device your account doesn’t recognize.

Opt into Secure Browsing for extra protection against unauthorized access to your Internet activity and to make sure you’re connected to the real LinkedIn website. While LinkedIn automatically secures a connection when you’re on certain pages that require sensitive information, you also have the option to turn on this protected connection when viewing any page.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers and anything else that catches his attention since 2005. You can follow him at LinkedInFacebook and Twitter. Email the Bach Seat here.

Norlight Bought by Windstream

The incumbent local exchange carrier (ILEC) Windstream (WINMQ) is going to acquire Q-Comm Corporation. Q-Comm is a privately held regional fiber transport and CLEC based in Overland Park, KS for about $782 million. Norlight, a wholly-owned subsidiary of Q-Comm has a fiber network in Michigan. The addition of Norlight to the Windstream market will expand its presence as a competitive force in the SMB market. Norlight currently has about 5,500 SMB customers.

Norlight map Michigan

Also included in the deal was Windstream’s purchase of Kentucky Data Link (KDL), another wholly-owned subsidiary of Q-Comm. Analysts suggest that the KDL addition by Windstream will complement its ongoing effort to upgrade and expand the fiber network in its own 16-state ILEC territory. KDL provides an additional 30,000 fiber route miles to the Windstream network. KDL has about 400 employees and provides fiber services for bandwidth-intensive customers such as wireline and wireless carriers — in 22 states.

Windstream“This transaction builds on Windstream’s strategy to become a next-generation telecom provider focused on broadband and enterprise customers,” Windstream CEO Jeff Gardner said in a release.

Windstream operates in 23 states, where it provides service for 3.3 million phone lines, 1.27 million Internet customers and 420,000 digital television customers. It has 9,500 employees and annual revenue of about $4 billion.

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Windstream says it will “increase success-based capital expenditure investments in the near term” with a concentration on “the wireless backhaul and enterprise businesses.”  Let’s hope so because the broadband in Michigan is terrible. According to theory, at least, increased competition for telco and cableco should drive down prices and increase services.

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.