Newark-based IDT Corporation, a global provider of telecommunications and payment services, announced today that it has completed the sale of Fabrix Systems (Fabrix) to Ericsson. The final sale price for 100 percent of the shares in Fabrix was $95 million in cash, excluding transaction costs and working-capital and other adjustments. IDT owned approximately 78 percent of Fabrix on a fully diluted basis.
IDT’s share of the sale price, net of transaction costs, is expected to be approximately $73 million in cash. IDT and other shareholders have placed $13.0 million of their proceeds in escrow to resolve any post-closing claims that may arise. Any unclaimed escrow balance will be released in two tranches over a period of 18 months.
IDT was advised on the deal by Stifel.
The description of the transaction contained herein is only a summary and is qualified in its entirety by reference to the definitive agreement relating to the transaction, a copy of which has been filed with the SEC as an exhibit to a Current Report on Form 8-K.Related Articles: