Avaya Inc. said on Monday it agreed to be acquired by private equity firms TPG Capital and Silver Lake for $8.2 billion, the latest in a string of deals in the telecommunications-equipment industry, reported Reuters.
According to Reuters, Avaya shareholders will receive $17.50 in cash per share, a premium of about 28 percent to its closing share price on May 25, when reports about a possible deal began to circulate.
According to Reuters, shares of Avaya closed up nearly 4 percent at $16.72 in New York Stock Exchange trade on Monday prior to the official announcement of the deal.
Avaya's small size compared with rivals like Cisco Systems Inc. (CSCO.O: Quote, Profile, Research has long made the company a subject of takeover speculation. Such talk recently intensified after Avaya postponed an investor conference, reported Reuters.
The takeover follows a series of deals telecommunications-equipment industry, including the formation of Alcatel-Lucent and a venture between the network units of Nokia and Siemens AG, reported Reuters.- New York State Society of Certified Public Accountants
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