iBasis takes unit, KPN takes iBasis

iBasis, an international VoIP wholesaler in Burlington, Mass., is merging with the business unit of the largest voice provide in the Netherlands, KPN, which in turn will become the majority shareholder of iBasis. The transaction was approved by iBasis shareholders last week.

Under deal terms, iBasis gets the KPN Global Carrier Services business unit and $55 million in cash, and KPN gets 40 million shares of common stock, making it a 51 percent shareholder. iBasis arranged to pay $113 million in dividends to its stockholders at close of business Sept. 28. iBasis shares took a dip on the news, from more than $10.50 to less than $9 on Oct. 1. The stock had rebounded to $10.54 by mid-day Wednesday.

Hot on the heels of that news, iBasis also announced an alignment with the Panamanian unit of Great Britain's Cable & Wireless for routing international voice traffic over the iBasis network. Given its U.S. foothold and KPN resources, expect to see more such deals for iBasis.

For More:
- The official announcement from iBasis is here
- The Cable & Wireless deal is described here

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