Avaya to merge with investment companies
Briefs | 06/05/2007 12:22 pm EDT
Ending bets that Nortel Networks would acquire Avaya Inc., the latter telecom equipment maker announced June 4 a merger agreement with private equity firm Silver Lake Partners and private investment partnership Texas Pacific Group Inc. (TPG) for US$8.2 million or US$17.50 per share, a premium of approximately 30% over Avaya's averaging closing share price in May. Avaya's board of directors has approved the merger, according to a press statement. The deal is expected to close in autumn, subject to shareholder and regulatory approval. Rumours of an impending Avaya sale began a few weeks ago, when the company reportedly cancelled a meeting with financial analysts. Nortel was considered an interested buyer.