June 25, 2009 (FinancialWire) — IDT Corp. (NYSE: IDT) (Current Market Cap: $38.92 Mil.) that it has closed on the purchase of the outstanding 49% of its Union Telecard Alliance, LLC joint venture from the Gomez Family Trust for $6.9 million.
UTA has been the distributor of IDT prepaid calling cards in the United States. The company utilizes a network of more than 850 sub-distributors that sell to retail outlets throughout most of the United States.
The company also develops marketing and distribution strategies for IDT's prepaid calling card products, including card design, pricing and market expansion opportunities.
Under the deal, IDT is paying $6.9 million for the UTA stake, with $3.6 million in cash paid on closing in addition to the $1 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.
Newark, New Jersey-based IDT is a consumer focused company operating primarily in the telecommunications and energy industries.
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