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IDT Corporation (NYSE: IDT; IDT.C) today said that it has agreed to
purchase the outstanding 49% of its Union Telecard Alliance, LLC (UTA)
joint venture from the Gomez Family Trust. The purchase is expected to
be consummated before the end of the month. UTA is the exclusive
distributor of IDT prepaid calling cards in the United States.
“This acquisition will streamline IDT Telecom’s operations in the
domestic prepaid calling card business. As a result, we expect to
enhance our capacity to develop and deliver high-quality, competitively
priced products to our customers,” said Liore Alroy, CEO of IDT Telecom.
Under the terms of the agreement, IDT will pay $6.9 million for the UTA
stake, with $4.6 million in cash to be paid upon closing. The Gomez
Family Trust will also receive certain non-core holdings of UTA, and may
receive up to an additional $2.5 million based on post-closing
adjustments and contingencies. The transaction is subject to customary
closing conditions.
UTA utilizes a network of more than 850 sub-distributors that sell to
retail outlets throughout most of the United States. UTA develops
marketing and distribution strategies for IDT’s prepaid calling card
products, including card design, pricing and market expansion
opportunities.
“Carlos Gomez has been a valuable partner. We are deeply appreciative of
the many contributions he has made to the Company’s calling card
business. This deal will not only enhance IDT’s operational
capabilities, but is also in keeping with management’s commitment to
restructure and simplify our business,” said IDT’s CEO Jim Courter.
About IDT Corporation:
IDT
Corporation (www.idt.net)
is a consumer focused company operating primarily in the
telecommunications and energy industries. IDT Corporation’s Class B
Common Stock and Common Stock trade on the New York Stock Exchange under
the ticker symbols IDT and IDT.C, respectively.
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 headings “Risk Factors” and “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.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.
Investor Relations:
IDT Corporation
Bill Ulrey, 973-438-3838
