Avaya enters into merger with Silver Lake,TPG Capital

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Avaya Inc . (NYSE:AV) today announced that it has entered into a definitive merger agreement with Silver Lake , the leading investment firm focused on large-scale investments in technology-driven growth industries, and TPG Capital , a leading private investment partnership, for approximately $8.2 billion or $17.50 per common share.

 

Under the terms of the agreement, Avaya shareholders will receive $17.50 in cash for each share of Avaya common stock they hold, representing a premium of approximately 28 percent over Avaya's closing share price of $13.67 on May 25, 2007, the last trading day prior to published reports regarding a potential transaction, and a premium of approximately 33 percent over Avaya's average closing share price of $13.17 during the 30 trading days ending May 25, 2007.

 

"After an extensive review of Avaya's strategic alternatives with Avaya management and our financial advisors, the board of directors of Avaya determined that this transaction with Silver Lake and TPG provides the best value for Avaya's shareholders," said Phil Odeen, non-executive chairman of Avaya's board of directors.

 

Avaya's board of directors has approved the merger agreement and resolved to recommend that Avaya shareholders adopt the agreement.

 

"In addition to delivering compelling value for our shareholders, the partnership with Silver Lake and TPG also creates clear value for Avaya employees and customers," said Louis J. D'Ambrosio, president and CEO, Avaya.  "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."

 

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