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Reuters: Avaya Mulls Buyout Offer From Private Equity Firm

An investment company offered to acquire Avaya (NYSE: AVYA) in a proposed deal valuing the telecommunications equipment maker at $5B, or more than $20 per share, Reuters reported Monday.

The report said Santa Clara, Calif.-based Avaya aims to grow its communications software business and cloud-based technology portfolio. The leveraged buyout offer came 15 months after the firm completed financial restructuring and Chapter 11 emergence processes.

The company posted a $738M revenue for the first quarter of its 2019 fiscal year ended Dec. 31, 2018. Eighty-three percent of that amount came from software and services sales.

Shares of Avaya closed Friday at $13.21, reflecting a market capitalization of roughly $1.5B.

The firm’s government solutions business provides unified communications hardware and software, data networking, video, mobility and contact center platforms.

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