IDT concluded the sale of a 2.5 percent stake in its National Retail Solutions (NRS) subsidiary to Alta Fox Capital Management. The private investment fund will spend $10 million.
IDT is a global provider of fintech, cloud communications and traditional communications services.
NRS operates a point-of-sale (POS) platform for helping independent retailers more effectively operate and process transactions, while also providing advertisers and consumer marketers with improved reach into underserved consumer markets.
“Given IDT’s strong balance sheet and ample cash flows from our mature businesses, we have been reluctant to accept outside investments in NRS,” said Marcelo Fischer, IDT CFO. “However, Alta Fox has demonstrated a deep understanding of our markets and growth opportunities, including expansion into adjacent markets. We are excited to have their support.”
“We are impressed by the quality of the NRS business and leadership team,” said Connor Haley, Alta Fox’s Founder and Managing Partner. “NRS has many of the characteristics we seek in our portfolio companies including market leadership, multiple high-margin revenue streams, and a significant revenue growth rate. We believe that NRS has the potential to be worth many multiples of the over $400 million implied enterprise value from our investment as management continues to execute on its strategic roadmap.”
