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IDT Corporation (NYSE: IDT; IDT.C) today said that it has closed on the
previously announced purchase of the outstanding 49% of its Union
Telecard Alliance, LLC (UTA) joint venture from the Gomez Family Trust.
The agreement was initially announced by IDT on June 17, 2009.
UTA has been the distributor of IDT prepaid calling cards in the United
States. 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.
As previously announced, IDT is paying $6.9 million for the UTA stake,
with $3.6 million in cash paid on closing in addition to the $1.0
million paid on entering into the agreement. The Gomez Family Trust has
also received certain non-core holdings of UTA, and may receive up to an
additional $2.5 million based on post-closing adjustments and
contingencies.
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.
Investor Relations:
IDT Corporation
Bill Ulrey: 973-438-3838
