Bloomberg News

Avaya Said to Plan Public Offering to Raise About $1 Billion

June 07, 2011

(Updates with the 2007 buyout price for Avaya.)

June 7 (Bloomberg) -- Avaya Inc., the phone-equipment maker owned by private-equity firms Silver Lake and TPG Capital, may file for an initial public offering that would seek to raise about $1 billion, according to a person with direct knowledge of the matter.

The company may file as early as this week, said the person, who declined to be identified because the plans aren’t public. The Basking Ridge, New Jersey-based company, spun off from Lucent Technologies Inc in 2000, was taken private in 2007 for $8.2 billion.

Avaya, which sells phones and related equipment to corporate clients, boosted sales 22 percent in the fiscal year ending in September, according to regulatory filings. The company bought Nortel Networks Corp.’s enterprise- telecommunications unit for $915 million in 2009, gaining more corporate phone equipment.

Skip MacAskill, a spokesman for Avaya, didn’t return a phone call requesting comment. Jennifer Farrelly, a spokeswoman for Silver Lake, and Owen Blicksilver, spokesman for TPG, declined to comment.

The Wall Street Journal reported Avaya’s IPO plans earlier.

More than 15 technology companies have filed for a public offering this year, an increase of 45 percent from last year. LinkedIn Corp., the largest professional-networking site, had a valuation as high as $11.6 billion in its first day of trading last month, while online coupon site Groupon Inc. filed to raise $750 million last week.

--Editors: Peter Elstrom, Ville Heiskanen, James Callan

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To contact the reporters on this story: Peter Burrows in San Francisco at pburrows@bloomberg.net; Katie Hoffmann in New York at khoffmann4@bloomberg.net

To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net.


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