IDT Global Israel CEO buys most of firm

Telecommunications firm IDT Corp (Nasdaq: IDT) has closed the sale of its local operations in Israel after a long period of uncertainty and protracted negotiations. The company, whose Israel affiliate provides outsourcing solutions, sold the controlling stake to IDT Global Israel CEO Eli Ninio, who now holds 80% of the company. Ninio declined to disclose the financial terms of the sale, although it is believed to have totaled tens of millions of dollars.

IDT originally operated in Israel through two lines of business. Its entertainment division set up and briefly operated an animation studio in Beit Shemesh which, at its peak, employed 170 people, but was subsequently closed after the division was sold. It also has an extensive business in the Jerusalem, which focuses principally on the provision of outsourced professional services such as call centers, - a business which, essentially, competes with the offshore call centers in India.

IDT Global Israel launched its outsourcing business six years ago and employed as many as 1,200 people at its peak. The company currently employs 450 people in call center businesses that Ninio acquired in Jerusalem, Tel Aviv, Beersheva, and Tzfat (Safed).

Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2008

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