Xfone, a service provider based in Jackson, Miss., has agreed to acquire NTS Communications, a telco based in Lubbock, Texas, for about $42 million. NTS has 47,500 customers throughout the Southwest, and there may be some regional synergies the two companies can explore.
An interesting aspect of this deal is that Xfone, while based in Mississippi, has international operations in the U.K. and Israel that include an international prepaid telephony firm and a low-cost international long-distance provider. Prior to this agreement, the majority of Xfone's revenue came from the United Kingdom, but that will change upon the closing of the NTS deal.
Xfone still needs to raise debt financing for the acquisition, so stay tuned.