Avaya Sets Plans to Go Public, Again

Apparently, Avaya, a maker of phones and other telecommunications gear, plans to file for a $1 billion initial public offering as early as this week, making it the latest technology company seeking to tap into a resurgent IPO market.

The offering for about 20% of Avaya, which was taken private by buyout firms Silver Lake and TPG Capital in 2007, could value it at $5 billion or more. The exact numbers -- and indeed whether the private-equity firms can pull off the IPO -- will depend on market sentiment at the time of the offering. Typically, there is a lag of two months or more between the filing of an IPO and its trading debut. Avaya's business has been buffeted by anemic corporate telecom spending and a weak global economy. In its fiscal year ended Sept. 30, Avaya had $5.1 billion in revenue, up 22% from the year before but little changed from 2003. Last year's revenue gain was mainly the result of an acquisition. The company reported a loss for the full year of $874 million. In spite of the company's losses, Avaya's owners stand to do well on the IPO deal that's under discussion.