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Private equity firms Silver Lake and TPG Capital on Friday completed the acquisition of IP telephony provider Avaya in a transaction valued at about $8.3 billion.
Under the merger agreement, which Avaya adopted at a special meeting held on September 28, Avaya's stockholders are entitled to get $17.50 in cash for each share of common stock they owned before the merger. Now that Avaya is a privately-owned company, its common stock will be delisted from the New York Stock Exchange.
Avaya, a business communications system and software supplier with $5.2 billion in annual revenue, first unveiled its plans to be acquired in June. The planned acquisition raised concerns about what would happen to Avaya's future products and services once the private equity firms controlled all aspects of the company, including R&D and customer support.
But Avaya's CEO Louis D'Ambrosio ensured customers that being acquired is a positive move that frees Avaya from the quarterly pressures of Wall Street and lets the company focus on rolling out new products.
"In this private environment, we can ensure long-term focus from a product innovation perspective and R&D perspective, that we're doing this for the longtime benefit of the customers," said D'Ambrosio in a past interview with InformationWeek.
D'Ambrosio said customers can expect the acceleration of product deployments, such as Avaya's communications-enabled business processes portfolio.
He added, "Avaya is still Avaya, with the same strategy and the same commitment to its customers. Customers should be excited about a large technology company like Avaya going private and the innovation it can now bring to market."