BASKING RIDGE, N.J., June 5 (UPI) -- Two U.S. private-equity firms have agreed to buy a telecommunications equipment company that was once part of Lucent Technologies Inc. for $8.2 billion.
Silver Lake Partners and TPG Capital LLC said their purchase of Avaya Inc. of Basking Ridge, N.J., represented a 28 percent premium to where the stock traded May 25, before reports circulated Avaya was in acquisition talks.
The deal is expected to close in the fall.
The buyers will pay cash, but did not say how they would finance the deal.
Chief Executive Louis D'Ambrosio told The Wall Street Journal he intended to stay.
At least two industry players had expressed interest in Avaya, including Nortel Networks Corp. and Cisco Systems Inc., the Journal reported.
Nortel and Cisco declined to comment.
For its fiscal year ended Sept. 30, 2006, Avaya posted net income of $201 million on revenue of $5.2 billion, with a profit margin of 4.2 percent.
Avaya, the former business communications division of Lucent and predecessor AT&T Corp., holds patents and makes equipment used to move traditional phone and data systems to integrated Internet protocol-based networks, combining voice, e-mail, conference, instant-messaging and video communications.