Avaya considering private equity takeover - reports

Reuters says Avaya is already considering a return to private ownership

The bosses of telecoms giant Avaya are considering a buyout backed by a private equity firm, according to Reuters.

Avaya listed on the New York Stock Exchange in January last year, having been through a bankruptcy process that saw it offload its networking business to Extreme Networks.

Reuters has now reported that the vendor's management is considering a buyout, citing people familiar with the matter.

The news agency said the deal would value Avaya at more than $5bn (£3.8bn). The comms vendor currently has a market cap of just under $1.5bn.

Avaya's share price soared by over 30 per cent in pre-market trading.

Reuters claimed that Avaya's board of directors are evaluating an offer from an unnamed private equity firm.

Avaya reported sales of $738m for the three months ending 31 December, down less than one per cent on the previous year. CEO Jim Chirico attributed this to "a few discrete items", including the US government shutdown.

Last year Chirico told CRN that Avaya was thriving on the stock market, claiming that being listed is helping to bring credibility back to the vendor after a difficult spell in Chapter 11.

Avaya's PR agency said the vendor does not comment on speculation.