Strata advised Aurix Ltd, a global provider of phonetic speech search and analytics technology on its sale to Avaya Inc
2011
Transaction Summary
Strata advised Aurix Ltd, a global provider of phonetic speech search and analytics technology on its sale to Avaya Inc
Transaction Overview
- Strata acted as exclusive financial advisor to Aurix Limited, a global provider of phonetic speech search and audio data mining technology to the contact centre and e-discovery markets, on its sale to Avaya, a global provider of business communications and collaboration systems and services
- Aurix was originally a spin out from QinetiQ, and its phonetic speech search engine is based on a world-class capability in speech recognition developed over three decades by the UK MOD’s DERA research facility and QinetiQ
- Aurix’s technology represents a break-through in speech analytics by enabling the real-time identification, searching and data mining of huge volumes of audio and audio-visual material, without the need for massive computer power
- As a venture backed company with globally leading technology, but lacking in scale, Aurix was loss-making. Strata focused on positioning Aurix with global leaders in the contact centre technology and e-discovery markets well in advance of launching a formal sales process. Through extensive interaction with a number of major potential acquirers, including Avaya, through 2010 and early 2011, we ensured that key bidders were familiar with the technology and its potential before receiving information on Aurix’s financial performance
Deal Highlights
- Mapping out the competitive landscape in Enterprise Communication, Contact Centre WFO, E-Discovery Software and Business Information & Analytics markets in Europe and North America; and utilising Strata’s senior relationships with leading players in those markets to position Aurix as a technology leader with high growth potential
- Managing a complex M&A process involving:
- A minority strategic investor with extensive pre-emption rights
- A change in Aurix’s majority shareholder during process (the VC fund’s general partner was changed by the limited partner in the midst of our work on the project)
- Managing tight cash constraints, e.g. by generating significant cash to fund operations through the licensing of certain technology rights to a key customer who was contacted in the M&A process
- Sale to a demanding US-based buyer with high requirements in terms of due diligence and IPR documentation