Telecommunications equipment maker Avaya has approved a takeover bid by private equity firms TPG Capital and Silver Lake for $8.2 billion (€6.1 billion), the latest in a string of deals in the sector.

Avaya has a significant research and development facility in Ireland and employs a total of 200 people here. Last October, it said it was adding another 55 R&D jobs here.

Avaya shareholders will receive $17.50 in cash per share, a premium of about 28 per cent to its closing share price on May 25th, when reports about a possible deal began to circulate.

Avaya's small size compared with rivals like Cisco has long made the company a subject of takeover speculation. Such talk recently intensified after Avaya postponed an investor conference.

The takeover follows a series of deals in the telecommunications-equipment industry, including the formation of Alcatel-Lucent and a venture between the network units of Nokia and Siemens AG.

Avaya was formed in October 2000, when it was spun off from Lucent Technologies, which was itself a spin-off from US giant AT&T.

It generates some $5 billion in annual revenue and leads the market for office equipment for internet telephony despite its small size relative to rivals Nortel and Cisco.

Its competitor, Canadian headquartered Nortel, was the other significant bidder.

However, Avaya's chairman Phil Odeen said the TPG Capital and Silver Lake bid provided the "best value for shareholders."