Privately held communications service provider Avaya is planning an IPO, according to a recent S-1 filing. The company is hoping to raise some $1B, which will be used to redeem its Series A preferred stock and repay various debts while still leaving the company’s owners with a controlling position.
Once a part of Bell Labs, the company was spun off from Lucent back in 2000 as the bubble was in the process of bursting. private four years ago by TPG Capital and Silver Lake for about $8.2B. Since then, the company also went out and bought Nortel’s enterprise division. In the six months ending March 31, Avaya has managed $2.756B in revenues on which it lost $600M – which included a $246M loss on extinguishment of debt.
it’s too early to say what reception such an IPO might bring, they may just be testing the waters initially. But after four years, their private equity owners are probably simply looking to monetize at least part of their investment in the company. With Cisco in the midst of restructuring and an economy that isn’t yet firing on enough (let alone all) cylinders yet, things probably aren’t ideal. On the other hand, the triumphant arrival of cloud computing does present opportunities for the company, and being more public about things might help.
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