Private Equity Firms Snag Avaya for $8.2 Billion
Silver Lake and TGP Capital beat out other rumored suitors Nortel and Cisco, but Avaya may yet accept other offers.Avaya struck a deal, late June 4, to be acquired by a pair of private equity firms, Silver Lake and TPG Capital, in a deal that Avaya executives said secures the companys ability to invest in its people and technology. The $8.2 billion merger, rumored for some time, beats out other rumored suitors, Nortel Networks and Cisco Systems and a third large communications equipment supplier, according to a Wall Street Journal report.
But whether the deal is truly done is unclear. Under the terms of the agreement, Avaya is still free to solicit and respond to unsolicited proposals from other potential suitors over the next 50 days. The existing agreement is expected to close in the fall.