Probably needs a new battery, and they didn't want to pay for an official APC-branded replacement. Or for political reasons, the cost of the battery might come out of a different budget than the cost of an entirely new UPS -- thus making a new UPS the only option they had, even though it's more expensive. (Yes, I have first-hand experience with exactly that scenario.)
Looks like a Back-UPS CS 800? I ordered a replacement battery set for one of those last month on eBay for ~$20 shipped from Gruber Power Systems. Much better than the $60+ that I'd have needed to pay to get the batteries from the local Batteries Plus. And yes, the CS 800 uses *two* batteries wired to deliver 24v instead of the usual 12v.