Avaya has agreed to a $8.2bn buy-out by private equity investment firms TPG Capital and Silver Lake Partners.
Avaya is a 2000 spin off from Lucent Technologies that develops enterprise phone systems. The firm is facing increasing competition as companies replace copper wire phone systems with IP networks.
Rumours about Avaya's sale started surfacing in late May. Nortel Networks of Canada has been named as another potential bidder.
On completion of the deal, Avaya will be delisted as a public company. Although this will free it from the burden of filing regular reports on earnings and future plans, the new owners are expected to finance the transaction with debt that will weigh on the company.
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