Tuesday, 5 June 2007

Avaya to be sold for USD8.2 B

Network equipment manufacturer Avaya Inc. has agreed to a USD 8.2 billion cash buyout by private equity firms TPG Capital LLP and Silver Lake Partners, the companies announced.

Network equipment manufacturer Avaya Inc. has agreed to a USD 8.2 billion cash buyout by private equity firms TPG Capital LLP and Silver Lake Partners, the companies announced.

This latest acquisition continues a recent trend of networking and telecommunications firms being bought by private equity firms. In late May, TPG and Goldman Sachs Group Inc.'s private equity arm bought mobile service provider Alltel Corp. for USD 27.5 billion. Bell Canada Ltd. remains a takeover target of a potential bid by Cerberus Capital Management LP.

The Basking Ridge, New Jersey company's board of directors have accepted a USD17.50 per share offer subject to approval by Avaya shareholders. The offer places a premium of around 28 per cent on the firm's value over Avaya's May 25 closing price of USD13.67, the last day before rumours begun to circulate that the company would likely be acquired. The deal is expected to close in the fall of this year, the companies said.