Two days after speculation surfaced, communications technology vendor Avaya filed papers with the SEC to sell $1 billion of stock.
Avaya officials have filed the
necessary papers for a $1 billion IPO following two days of speculation
The Wall Street Journal had reported
June 7 that Avaya, a networking and communications technology vendor, was
preparing to go public again, taking advantage of a newly energized IPO market
buoyed by the likes of LinkedIn and Groupon.
Avaya officials late June 9 announced
that they had filed the paperwork with the Securities and Exchange Commission
seeking to sell $1 billion worth of stock in the company. Analysts had said the
IPO would be about 20 percent of the company's worth, putting the overall value
of Avaya at about $5 billion.
According to Avaya, the company will
use some of that $1 billion to pay down long-term debt, among other things.
The company issued a release, but a
spokesperson said Avaya executives would not comment further on the IPO.
Handling the public
offering will be Morgan Stanley & Co., Goldman, Sachs & Co., J.P.
Morgan Securities, Citigroup Global Markets, Deutsche Bank Securities, BofA
Merrill Lynch, Barclays Capital, UBS Investment Bank and Credit Suisse
Avaya initially was part of AT&T, and
then part of Lucent Technologies when AT&T spun off that company. Avaya
became its own company when it spun off from Lucent in 2000, when it was listed
on the New York Stock Exchange. Venture capitalist firms Silver Lake and TPG
Capital bought the company for $8.3 billion in 2007, and took it private.
Avaya has aggressively built up its
networking and communications offerings, including through its $915 million
acquisition in late 2009 of bankrupt Nortel Network's enterprise business unit,
which enabled it to overtake Cisco Systems as the world's top vendor of
enterprise telephony technology. Over the past couple of years, Avaya also has
launched a range of products, including Aura, its broad unified communications
In addition, Avaya actively pursued
partnerships, including with Hewlett-Packard, IBM, Polycom and Skype.
The Wall Street Journal
reported that although
Avaya's revenue had grown 24 percent in the six months that ended March 31, it
saw its losses grow as well, from $421 million a year earlier to $615 million