Tuesday, June 5, 2007
Avaya yesterday filed the merger agreement with respect to its acquisition by Silver Lake and TPG Capital for approximately $8.2 billion or $17.50 per common share. The deal terms appear rather standard for a private equity buy-out. Avaya had previously announced that the agreement contained a fifty day go-shop; in what is becoming the norm, the agreement also sets a staggered break fee of $80 million during the go-shop period and $250 million thereafter. For more on the transaction, see the Marketwatch article here.
The deal is a nice Illustration of the dynamic nature of our capital market and the effect of a thick M&A market. Avaya was spun-off from Lucent. Lucent has subsequently merged with Alcatel to form Alcatel Lucent. And Lucent was itself was spun off by AT&T -- AT&T has itself been acquired by SBC which took on AT&T's name.