22 Jun 2006
Netherlands telecoms group KPN has announced it is to merge its international wholesale voice business, KPN Global Carrier Services, with US-based iBasis. KPN will pay USD55 million for a majority stake in the enlarged company. iBasis shareholders will receive a cash dividend of USD113 million upon completion of the deal, expected by the end of 2006. The merged entity will preside over KPN’s wholesale voice network in Europe and Asia, and iBasis’ footprint in the Americas and Asia. It is expected to generate revenues of USD1.2 billion to USD1.25 billion in 2006 and EBITDA of between USD45 million and USD50 million. ‘Consolidation of iBasis revenues will contribute to the growth of our fixed activities and increase the contribution of IP-based services in our portfolio,’ KPN’s Chief Executive Ad Scheepbouwer said in a statement.