“Mitel’s making an offer to take over Avaya.

“Mitel’s making an offer to take over Avaya.

Avaya has considered a bid from Mitel to take over the company, reports Bloomberg. According to sources, the deal would ultimately create a telecom company worth more than $5 billion (€4.5 billion).

The American and Canadian telecom tower had been in conversation since April. There were rumours about a takeover back then, but now there is a ready-made deal on the table. Sources report that Avaya has now seriously considered Mitel’s offer. According to Bloomberg‘s sources, the deal would lead to a value of more than $20 per share at the new company. Mitel’s investors would acquire about a third of the company. Furthermore, the new company would remain listed on the stock exchange.


Mitel would expect a combined revenue of at least $250 million a year, should the deal come through. The company also plans to invest $150 million. This amount would be intended to repurchase shares. Mitel is part of the private equity firm Searchlight Capital. None of these companies officially disclosed anything about the status of the deal.

Avaya announced on 13 August that a number of deals were being discussed with one of several potential partners. It’s not entirely clear whether this particular offer from Mitel was one of them at the time. In any case, Avaya announced that a decision on one of these deals would be taken within 30 days. Bloomberg also reports that shares in Avaya skyrocketed after announcing the news.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.