Avaya deliberating over leveraged buyout offer that values it at $5Bn
Category: #business  By Pankaj Singh  Date: 2019-03-25
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Avaya deliberating over leveraged buyout offer that values it at $5Bn
  • The proposed acquisition offer comes approximately 15 months after the company emerged from a bankruptcy protection.
     
  • The company has been attracting acquisition interest from several private equity companies over the previous couple of months.

Avaya Holdings (Avaya), a Santa Clara-based multinational technology firm, is reportedly considering a leveraged acquisition offer from an anonymous private equity company that values the company at over $5 billion.

Reports cite, the proposed acquisition offer comes approximately 15 months after the company emerged from a bankruptcy protection, the legacy of the company’s prior leveraged acquisition offer, its $8.3 billion sale to private-equity companies Silver Lake & TPG Capital back in 2007.

According to a report by Reuters, the Avaya Holdings Board of Directors are currently evaluating the private equity firm’s offer that values Avaya shares at $20 each. The company’s shares stopped trading at approximately $13.21 on the stock market, which gave it a market capitalization of about $1.5 billion. Avaya also had a $3.2 billion debt as of last December.

The company has been attracting acquisition interest from several private equity companies over the previous couple of months and sources familiar to the matter claim that the latest offer from the private equity firm is not guaranteed to go through as Avaya is still contemplating the proposal.

For the record, Avaya is known as one of the world’s biggest telephony systems provider, it was branched off in 2000 from Lucent Technologies Inc., which previously used to come under AT&T Inc. The company, which competes with the likes of Cisco Systems & Microsoft Corp, has been attempting to boost its business of facilitating communications software to several companies as its hardware component unit has become more dated & commoditized. Moreover, it has also been looking for opportunities to widen its cloud-based communication services portfolio.

According to reports, the identity of the private equity firm which has made the latest leveraged buyout offer has not been unveiled yet.

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About Author

Pankaj Singh    

Pankaj Singh

With an experience as an insurance underwriter and a freelance writer under his belt, Pankaj Singh boasts of quite some expertise in the field of content creation. A qualified Post Graduate in Management, Pankaj has also completed a detailed course in Digital Marketin...

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