Xfone said Thursday it will buy competitive carrier NTS Communica...
Xfone said Thursday it will buy competitive carrier NTS Communications of Lubbock, Tex., for $42 million. Xfone operates in Israel, the U.S. and the United Kingdom. NTS expects the deal to close in December or January, said Brad Worthington,…
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NTS executive vice president. The companies filed SEC papers on the deal Wednesday, Xfone said. The deal also requires approval by the FCC and the public service commissions in Texas, Arizona, New Mexico, Colorado, Oklahoma and Kansas, Worthington said. NTS has secured 85 percent shareholder approval and will hold a Sept. 5 meeting to take questions and seek more support, he said. Xfone is in talks with lenders to finance the transaction, the company said. Xfone expects the merger to “significantly expand” its service area and “dramatically enhance” its revenue, cash flow and profitability, it said. NTS senior management, including Worthington, Barbara Baldwin and Jerry Hoover, will join Xfone in “key management positions,” Xfone said. Also joining Xfone is NTS’s sales and operations team, Xfone said.