Communications network provider Avaya will purchase Tenovis GmbH & Co. KG, a German communications systems business, in a $370 million cash deal that will increase Avaya's presence in Europe.
Avaya said Tuesday that as part of the transaction with affiliates of Kohlberg Kravis Roberts & Co. it will also assume about $265 million in debt. Since Tenovis is expected to have $115 million in cash at closing, Avaya's cash outlay is to be about $255 million, Avaya said.
The transaction is subject to regulatory approvals and closing conditions.
The company had no timeline for closing, an Avaya spokeswoman said. However, the company said it expects its 2005 results to include about nine months of Tenovis results. Avaya's fiscal year began Friday.
"The acquisition of Tenovis significantly enhances Avaya's size and scale in Europe, and is a major step in Avaya's plan to grow its business globally," Avaya chairman and CEO Donald K. Peterson said.
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