Quick Silver Buyout
June 13, 2007
Buyout shops still seem to have the edge over industrial partners in many deals. TPG Capital and Silver Lake Partners have snatched telecoms equipment maker Avaya from under the nose of rival Nortel Networks in an $8.2bn deal. One attraction of Avaya, which owns technology that integrates voice and data on internet protocol networks for companies, is that half its revenue comes from long- term contracts. Just the kind of cashflow buyout firms need to support their high gearing.
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