IDT to Buy Net2Phone for $28 Million

IDT Corp., a New Jersey-based CLEC, said today it will buy wholesale VoIP provider Net2Phone Inc. for approximately $28.1 million and turn it into a privately held, wholly owned subsidiary.

If all goes as planned, IDTs subsidiary, NTOP Acquisition Inc., will merge with Net2Phone, and keep the Net2Phone name. Meanwhile, Net2Phones common stock will be deregistered from the Nasdaq National Market.

The companies intend to convert Net2Phones stock into $2.05 in cash, without interest, or cancel it altogether. The $2.05 is the same amount IDT paid per share in its tender offer for Net2Phone common stock when it bought 31.6 million shares in late January.

Net2Phones and IDTs boards of directors both have unanimously approved the merger. Kirkland & Ellis LLP served as legal advisor and The Blackstone Group L.P. as financial advisor to Net2Phone.

IDT Corp. www.idt.net
Net2Phone www.net2phone.com