atcomsystems.ca/forum Forums General Telecom News Avaya considers buyout

Yeah, that's the link that Mike posted earlier.

Thanks for the input Mr. Ed. I also expect the BP may have more issues then the end users as well. I'll have to check with my BP on the subject. I just hope they don't force upgrades more often the Avaya as they get quite costly for companies such as ours. My other choice would be to pull my system out and find a new system... which doesn't sound too desirable.

I hope that Avaya contacts it's customer base to at least tell us of the buyout. That would be the respectable thing to do anyway.

I guess I'll have to keep my ears open. Thanks again! Rhonda

No need to get rid of the definity. The platform is older that me will will probably be around forever.

But if Silver Lake Partners is nothing more than an investment group, why would the predicted fate of Avaya be any different than that of Comdial? Vertical is an investment group. Sooner or later they're going to acquire enough worth to sell to the highest bidder. That's when I expect someone (Vertical or Avaya) to sell out to the dark side.

I was kinda hoping the Avaya thing would turn out to be Vertical's next purchase! What a name they would have then.

Unlike Cisco, Avaya is saddled with older, traditional phone systems, which have seen declining sales as clients upgrade to faster Web equipment.

Faster web equipment? :shrug:

Found this on another board. Thought I would share.

To the employees of Avaya,


Today we took another important step in our history.

We just announced that we have entered into a definitive merger
agreement with Silver Lake and TPG Capital, two of the world's
preeminent private equity companies for approximately $8.2 billion or
$17.50 per share of Avaya common stock, representing a significant
premium over trading values prior to rumors about a transaction.

In addition to providing compelling returns for shareholders, this
transaction delivers clear value for our employees and customers. Going
private creates an environment for Avaya and its employees to accelerate
the execution of our strategy. It provides an opportunity to extend our
technology and services leadership and powerfully advance our ability to
deliver the "gold standard" of solutions to our customers.

We are playing to win. While this is a big step, most things will not
change for our company. We are more confident than ever that our three
priorities - strategy, execution and culture - are right on target:

1. Strategy - "play to win," move up the value stack;

2. Execution - get ourselves into fighting shape;

3. Culture - create a thrilling and rewarding work environment.

We have made enormous progress in each of these areas, thanks to the
tireless effort and commitment of the Avaya team.

We now have two new, outstanding partners: Silver Lake and TPG. They are
completely aligned with our strategy and mission. Both firms bring a
breadth of resources, investments, and insight into the communications
and software industries. Furthermore, they have outstanding track
records in working with the management teams of technology companies to
deliver outstanding results.

In the press release issued today, David Roux, co-founder and managing
director of Silver Lake, said, "Our interests are aligned with the
long-term interests of Avaya's customers and employees ... to build on
the company's remarkable technology and history, which spans more than a
century, to develop advanced IP communications solutions as a source of
competitive advantage for customers."

John Marren, a partner at TPG, said, "As one of the earliest private
investors in technology and telecommunications, TPG has come to know and
admire Avaya for its roster of leading customers, history of product
innovation and commitment to customer service. We look forward to
working with our partners at Silver Lake and Avaya's excellent team to
continue to build this exciting franchise."

It's an exciting time for the Avaya team and its customers. We expect
the transaction to close in the fall of 2007, subject to receipt of
shareholder approval and customary regulatory approvals and closing
conditions.

I look forward to discussing today's announcement with you in greater
detail. We will hold an all-employee call on Tuesday June 5 at 10:30
a.m. ET. Please watch for further information.


Thank you.

Louis J. D'Ambrosio
President and CEO

I received this via email...

Dear Rhonda,

It is with great enthusiasm that I share with you an announcement Avaya made to enter into a definitive merger agreement with Silver Lake Partners and TPG. We believe this partnership will deliver compelling benefits to our customers. In going private -- with the long-term investment horizon -- we will be able to extend Avaya's technology leadership and lead the transition to software based IP Communication solutions and services. You could expect the same strategy, the same mission, with accelerated execution.

Silver Lake and TPG have invested in many industry-leading technology firms and have an excellent track record aligned with customers' long-term objectives. "Our interests are aligned with the long-term interests of Avaya's customers" said David Roux, co-founder and managing director of Silver Lake.

Nick Lippis of Lippis Enterprises, an industry consultancy, writes, "Avaya customers will be rewarded by Avaya's ability to further invest in the Avaya platform of Intelligent Communications."

Zeus Kerravala, SVP of enterprise research for Yankee Group, concludes "Customers will be the net winners."

It is an exciting time in our industry, with the convergence of voice and data technologies. Our mission is to continue to deliver the "gold standard" of communications solutions and translate them into extraordinary value for you and your organization. We take nothing for granted and will continue to dedicate our entire company to earn the trust you have placed in us.

We look forward to continuing our long and rewarding relationship.

Sincerely,

Lou

Louis J. D'Ambrosio
CEO and President
Avaya Inc
211 Mount Airy Road
Basking Ridge, NJ 07920 USA

Let's see now .......

To set the scene, envision a grimy used car lot, a lean fellow with a plaid sports coat, a thin mustache, and oily, slicked back hair and a large cigar......

"This is the real deal, just for you ---- Trust me!"

'Nuff said.