Avaya goes private in $8.2B deal

Corporate infrastructure provider Avaya Inc. announced an $8.2 billion deal under which it will be bought out by two private-equity firms. The transaction is just the latest in a growing line of private-equity buyouts in the telecom industry.
Under the terms of the agreement, Silver Lake and TPG Capital will purchase Avaya for around $17.50 per common share.
“After an extensive review of Avaya’s strategic alternatives with Avaya management and our financial advisors, the board of directors of Avaya determined that this transaction with Silver Lake and TPG provides the best value for Avaya’s shareholders,” said Phil Odeen, a member of Avaya’s board of directors.
The news essentially shuts the door on a rumored deal between Avaya and Nortel Networks Ltd.
The deal among Avaya, Silver Lake and TPG Capital is expected to be completed in the fall of this year, and is subject to shareholder approval and regulatory approvals.
Alltel Corp. and Freescale Semiconductor Inc. are among a number of telecom companies that have been tagged in private-equity deals.