Avaya to sell Connectivity Solutions business to CommScope

Avaya Inc. today says it has agreed to sell its Connectivity Solutions business to CommScope, Inc.

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 manufactures 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 and Australia. The business has administrative offices in Richardson, TX. 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," says Don Peterson, chairman and CEO of Avaya. "The talented individuals and the market-leading systems and products they provide are an excellent match with the people and products of CommScope."

Avaya Inc., based in Basking Ridge, NJ, designs, builds and manages communications networks for more than 1 million businesses worldwide.

CommScope (www.commscope.com), based in Hickory, NC, manufactures broadband coaxial cable for Hybrid Fiber Coaxial applications. The company supplies high-performance optical fiber and twisted pair cables for LAN applications. For more information visit www.avaya.com.