Telecom equipment provider Avaya considers leveraged buyout: sources

Telecommunications equipment and software vendor Avaya Holdings Corp is considering a leveraged buyout offer from a private equity firm that values it at more than $5 billion, including debt, people familiar with the matter said on Sunday.

The acquisition offer comes 15 months after Avaya emerged from bankruptcy protection, the legacy of a previous leveraged buyout, its $8.3 billion sale to private equity firms TPG Capital and Silver Lake in 2007.

Avaya’s board of directors is evaluating an offer from a private equity firm that values it at more than $20 per share, the sources said. Avaya shares ended trading on Friday at $13.21, giving it a market capitalization of $1.5 billion. The company also had $3.2 billion in debt as of the end of December.