IDT buys Union Telecard from Carlos Gomes

IDT announced today that it was buying the remaining 49% of Union Telecard. Union Telecard (UTA) was founded in May 2003 to distribute the phone cards issued by IDT. According to the terms that were announced, Carlos Gomez Trust walks away with $6.9 million from the deal.

The UTA brands have not been selling nearly as well in the northeastern Ohio market as they have in the past. At one point UTA was about 20% of our sales, but they frequently changed policies over the past few years and made it difficult for us to support their product line. Hopefully this move will bring on new changes that will give us reason to promote their product line.