Newark-based IDT Corporation, a global provider of telecommunications and payment services, announced today that it has reached an agreement to sell its interests in Fabrix Systems (Fabrix) to Ericsson. The sale price for 100 percent of the shares in Fabrix Systems is $95 million, subject to working-capital and other customary adjustments. IDT owns approximately 78 percent of Fabrix on a fully diluted basis.
The sale is expected to close in October 2014, subject to customary conditions. IDT acquired a majority stake in the Israel-based Fabrix in 2007, and the business has grown significantly since then.
Shmuel Jonas, IDT’s CEO, said, “This sale further sharpens our strategic focus on our growing communications and payments businesses, and represents another in a string of successful efforts to maximize shareholder value by selling or spinning off non-core businesses we have created or nurtured.”
IDT Corporation has spun off three public companies to its shareholders over the past five years: CTM Media Holdings Inc. (OTC Pink Markets: CTMMA, CTMMB); Genie Energy Ltd, (NYSE: GNE), and Straight Path Communications Inc., (NYSE MKT: STRP).
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