IDT Corp. (IDT) Completes Acquisition of UTA Joint Venture

June 24, 2009 5:06 PM EDT

IDT Corporation (NYSE: IDT) today said that it has closed on the previously announced purchase of the outstanding 49% of its Union Telecard Alliance, LLC 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.

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