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IDT Corporation (NYSE: IDT; IDT.C) today announced an agreement to sell
its European prepaid payment services business to NEOVIA Financial Plc
(“NEOVIA”) (LSE: NEO) for $15.05 million. NEOVIA is an independent,
global provider of online payments.
Under the terms of the agreement, NEOVIA will acquire IDT Financial
Services Holdings Limited and other assets which together provide
prepaid MasterCard® products in the UK market under the “Prime Card”
brand. The purchased assets include approximately $10 million in
securities held pursuant to regulatory requirements.
The proposed transaction is subject to regulatory approval of the
Gibraltar Financial Services Commission and consent of MasterCard®.
Howard Jonas, Chairman of IDT Corporation, said that the acquisition
will benefit consumers. “NEOVIA’s considerable resources and expertise
will expand the range of financial services available to IDTFS customers
while nicely complementing NEOVIA’s existing capabilities.”
“This sale is part of our broader initiative to focus the company’s
operations on our core businesses,” said Jim Courter, CEO of IDT
Corporation. “We continue to sell and close down businesses that,
however promising, do not meet our strategic objectives.”
IDT Corporation
IDT
Corporation (www.idt.net)
is a consumer-focused multinational holding company.
In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we use
the words “believe,” “anticipate,” “expect,” “plan,” “intend,”
“estimate, “target” and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995.While these forward-looking statements
represent our current judgment of what may happen in the future, actual
results may differ materially from the results expressed or implied by
these statements due to numerous important factors, including, but not
limited to, those described in our most recent report on SEC Form 10-K
(under the heading “Management’s Discussion and Analysis of Financial
Condition and Results of Operations”), which may be revised or
supplemented in subsequent reports on SEC Forms 10-Q and 8-K.These
factors include, but are not limited to, the following: potential
declines in prices for our products and services; our ability to
maintain and grow our retail telecommunications services, particularly
our prepaid calling card business; availability of termination capacity;
financial stability of our customers; our ability to maintain carrier
agreements with foreign carriers; effectiveness of our marketing and
distribution efforts; increased competition, particularly from regional
bell operating companies; our ability to manage our growth; impact of
government regulation; our ability to obtain telecommunications products
or services required for our products and services; and general economic
conditions, particularly in the telecommunications markets.We
are under no obligation, and expressly disclaim any obligation, to
update the forward-looking statements in this press release, whether as
a result of new information, future events or otherwise.
IDT, Investor Relations
Bill Ulrey, 973-438-3838
