IDT, Net2Phone complete mating dance
Under a deal announced Friday morning, IDT said it will acquire Net2Phone in a deal valued at $28.1 million. If the merger goes through, each issued and outstanding share of common and Class A stock of Net2Phone (other than those held by IDT of its subsidiaries) will be canceled and converted automatically into the right to receive $2.05 in cash, without interest, said the companies, whose respective boards have already approved the deal unanimously.
That is the same price per share IDT paid in its tender offer for Net2Phone common stock, when IDT obtained roughly 31.6 million Net2Phone shares.
Once the deal is closed, Net2Phone is slated to become a privately-held, wholly-owned subsidiary of IDT, a facilities-based carrier headquartered in Newark, N.J.
In Net2Phone, IDT will obtain a "turnkey" provider of VoIP services. Net2Phone markets both SIP- and PacketCable-based IP voice services. In the cable sector, Net2Phone has VoIP partnerships with MSOs such as Atlantic Broadband, Liberty Cablevision of Puerto Rico, Bresnan Communications, Millennium Digital Media, Northland Communications and CMA Communications.
As of Oct. 31, 2005, Net2Phone said it marketed cable telephony services to more than 1.4 million homes, but had just 57,000 broadband telephone lines in service. Its direct-to-consumer business, which includes rechargeable calling cards, ended Q1 with more than 100,000 active subscribers.
Net2Phone posted fiscal Q1 revenues of $21.7 million, up 7 percent from $20.3 million in the year-ago period.