IDT Corp, the Hackensack New Jersey-based discount telecommunications and internet services company, has acquired one of its partners, Rock Enterprises Inc, for approximately $5m in IDT stock. Privately-owned Rock has specialized in telecoms engineering, and has provided IDT with switching capabilities, routing and platform tables and software research and development on a contract basis. Bringing the technology and skills in-house is expected to significantly reduce costs said the company. Savings would amount to a sum far greater than the amount of the investment, said the company, which said it expected the net effect of the acquisition to be highly accretive to earnings in the next fiscal year with no foreseeable dilution to earnings. Most of the engineers at Rock held senior positions at Lucent’s – previously AT&T Co’s – Bell Labs in New Jersey, before forming the company.
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