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Press Release |
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Avaya
Agrees to Sell Connectivity
Solutions Business to CommScope
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For
immediate release: Monday, October
27, 2003 |
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Basking
Ridge, N.J. , US - Avaya Inc. (NYSE:
AV), a leading global provider of
communications solutions and
services for businesses, today said
it has agreed to sell its
Connectivity Solutions business to
CommScope, Inc. (NYSE: CTV), a
leader in the design and manufacture
of high-performance broadband
communication cables.
Under the terms of the agreement,
Avaya will receive a purchase price
of $263 million, subject to
adjustment, consisting of
approximately $210 million of cash,
a convertible note payable in the
amount of $18 million, and CommScope
common stock having a current value
of $34.9 million. Additionally,
under the terms of the agreement,
CommScope will assume up to $75
million of certain specified
liabilities primarily related to
employee matters. The transaction is
expected to close within 90 days
except with regard to certain
international operations and is
subject to customary conditions
including regulatory and other
approvals.
Connectivity Solutions is a world
leader in structured cabling for
businesses and telecommunications
service providers. Its products
include SYSTIMAX® structured cabling
solutions for enterprises,
ExchangeMAX® structured cable and
apparatus for telecommunications
service providers and integrated
cabinet solutions. Structured
cabling connects voice, data and
video equipment in office buildings
and in telephone central offices.
Integrated cabinets house cable
terminations, wiring, and connection
devices for voice, data and wireless
equipment.
Avaya said Connectivity Solutions
had fiscal 2003 sales of
approximately $542 million and
operating income of approximately $3
million.
Approximately 2000 people work for
Connectivity Solutions primarily in
manufacturing facilities in Omaha,
Nebraska, Bray, Ireland and
Brisbane, Australia. The business
has administrative offices in
Richardson, Texas. As part of the
agreement, CommScope will assume
Connectivity Solutions' leases and
purchase its facilities, including
its factory in Omaha.
"The sale of the Connectivity
Solutions group is another important
step in Avaya's evolution as we
continue to sharply focus on our
core IP telephony and services
businesses. Connectivity Solutions
just finished a good quarter with an
increase in revenues and its third
straight quarter of positive
operating income," said Don
Peterson, chairman and CEO, Avaya.
"The talented individuals and the
market-leading systems and products
they provide are an excellent match
with the people and products of
CommScope."
About Avaya
Avaya Inc. designs, builds and
manages communications networks for
more than 1 million businesses
worldwide, including 90 percent of
the FORTUNE 500®. Focused on
businesses large to small, Avaya is
a world leader in secure and
reliable Internet Protocol (IP)
telephony systems and communications
software applications and services.
Driving the convergence of voice and
data communications with business
applications — and distinguished by
comprehensive worldwide services —
Avaya helps customers leverage
existing and new networks to achieve
superior business results. For more
information visit the Avaya Web
site:
http://www.avaya.com
About CommScope
CommScope is the world's largest
manufacturer of broadband coaxial
cable for Hybrid Fiber Coaxial (HFC)
applications and a leading supplier
of high-performance fiber optic and
twisted pair cables for LAN,
wireless and other communications
applications. Through its
relationship with OFS, CommScope has
an ownership interest in one of the
world's largest producers of optical
fiber and cable and has access to a
broad array of connectivity
components as well as
technologically advanced optical
fibers, including the zero water
peak optical fibers used in the
production of the LightScope ZWP™
and LaserCore® families of cable
products. Visit CommScope at its Web
site:
www.commscope.com.
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For more
information reporters may contact:
Renaldo Juanso, Media Contacts
Avaya
(408) 577-7557 (office)
juanso@avaya.com
(415) 602-9849 (mobile)
Scott Horne, Media Contacts
Avaya
(908) 953-3476 (office)
horne@avaya.com
(973) 763-8032 (mobile)
Leo Cheung, Investor Inquiries
Avaya
(908) 953-4031 (office)
leocheung@avaya.com
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This
article reprinted from AVAYA.com. |
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