Telecom equipment provider Avaya considers leveraged buyout: Reuters

▤ Summary

(Reuters) – Telecommunications equipment and software vendor Avaya Holdings Corp is considering a leveraged buyout offer from a private equity firm that values it at more than $5 billion, including debt, people familiar with the matter said on Sunday. The acquisition offer comes 15 months after Avaya emerged from bankruptcy protection, the legacy of a previous leveraged buyout, its $8.3 billion sale to private equity firms TPG Capital and Silver Lake in 2007. Avaya has attracted acquisition interest from private equity firms over the last few months, and there is no certainty the latest offer will result in a deal, the sources said. The company blamed currency exchange rates and the U.S. federal government partial shutdown for the weaker earnings. Avaya’s contact center business, which powers the customer care and sales operations of some of the world’s biggest companies, has also attracted acquisition interest in the past from private equity firms, including Clayton Dubilier & Rice LLC, Hellman & Friedman LLC and Permira Advisers LLP.

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Avaya

$1B+