11 June 2007

For years Awaya had the VOIP market to
themselves. Now only days after Cisco via their 100% owned subsidary
Linksys have rolled out a sub $1,500 VOIP solution Avaya has been
acquired in an $8.2 billion private equity purchase by Silver Lake, an
investment firm focused on large-scale investments in technology-driven
growth industries, and TPG Capital, a private investment partnership.

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The deal amounts to $17.50 per common share,
which Avaya shareholders will receive in cash—approximately 28 percent
over Avaya's closing share price of $13.67 on May 25, when reports were
published regarding a possible buyout. The board of directors of Avaya
has approved the buyout, suggesting that the company's shareholders do
the same.

The $8.2 billion deal to take telecommunications
equipment maker Avaya private raises questions about the future of
rival Nortel Networks and a collection of smaller gears that are
finding it increasingly challenging to compete with Avaya...