Avaya announces multi-billion dollar merger

Tech investments planned

Avaya today announced it has entered into a merger agreement with two private equity firms, Silver Lake and TPG Capital for approximately $8.2 billion.

After an extensive review of the company's strategic alternatives, shareholders agreed the transaction provides the best value.

Avaya CEO, Louis Ambrosio, said the real value is for customers and employees.

"The investment in our people and technology and the operating structure will enable us to extend our technology and services leadership and continue to deliver the gold standard of communication solutions in the industry," Ambrosio said in a statement issued today.

Silver Lake managing director, David Roux, and TPGalso partner, John Marren, also issued statements praising the merger.

The transaction is expected to be completed in the fall of 2007 with Credit Suisse serving as exclusive financial advisor to Avaya's board of directors.

Avaya is a communications provider to more than 90 percent of the Fortune 500 while Silver Lake focuses on large scale investments in technology and related growth industries.

Its portfolio includes or has included Business Objects, Sabre Holdings, Seagate Technology, Serena Software and SunGard Data Systems.

TPG Capital is a private investment firm with more than $30 billion of assets under management.

Significant investments include Intergraph, Japan Telecom and the Lenovo Group.

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More about AvayaBillionBusiness ObjectsCredit SuisseIntergraph CorpJapan TelecomLenovoSabre CorpSeagateSeagate TechnologySerena SoftwareSUNGARDSunGard Data SystemsTPG Telecom

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