Silver Lake Partners, TPG to get Avaya

Avaya Inc. agreed to be acquired by Silver Lake Partners and TPG Inc. for $8.2 billion in the largest leveraged buyout
of a computer-networking company. Investors will receive $17.50 a share, Basking Ridge, New Jersey-based Avaya said in a statement.

That's 4.7 per cent more than Monday’s closing price and 28 per cent more than before speculation about
a purchase surfaced on May 29. The deal gives the buyout firms the world's biggest maker of corporate phone network equipment, letting them go head-to-head with Cisco Systems Inc. in the $5 billion market for Web-based gear.

The purchase also marks the latest foray by private-equity firms into the technology and communications industry, following bids last month for Acxiom Corp., Alltel Corp. and CDW Corp.

“Private equity will probably make it a stronger organization,'' said Troy Jensen, an analyst at Piper Jaffray & Co. in Minneapolis, who rates the shares “outperform.'' From a shareholder perspective, it's definitely a good move.''