IDT Corp. Selling Fabrix Systems for $95 Million to Ericsson

IDT Corporation, provider of telecommunications and payment services, has reached an agreement to sell its interests in Fabrix Systems to Ericsson.

The sale price for 100% of the shares in Fabrix is $95 million, subject to working-capital and other customary adjustments. IDT owns approximately 78% 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 since then.

Shmuel Jonas, IDT 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: C Media Holdings Inc. ; Genie Energy Ltd, and Straight Path Communications Inc.

Fabrix is a provider of cloud storage, computing and network delivery for video applications. It pioneered a cloud-based scale out storage and computing platform focused on providing any integrated solution optimized for media storage, processing and delivery applications such as cloud DVR, and VOD expansion. Its approach takes advantage of the advances in clustered storage, grid computing, virtualization and video processing technologies enabling a range of applications.