IDT Corp late last Friday said it is finalizing the acquisition of the 12.8% of Net2Phone that it did not already own, for $28.1 million. The VoIP and cable telephony company began as an IDT service and division in 1996 and was later spun off as a publicly-traded company in 1999.

IDT had announced the repurchase in December of 2005.

An IDT statement said that under the terms of the agreement, NTOP Acquisition, Inc., a wholly-owned subsidiary of IDT, would merge with and into Net2Phone, with Net2Phone continuing as the surviving corporation.

Under the merger plan, Net2Phone common stock and Class A common stock will be cancelled and converted into $2.05 a share in cash, which is the same price per share that IDT paid in an earlier tender offer for Net2Phone stock that expired on January 27, according to a company statement. IDT acquired 31.6 million Net2Phone shares in that offer, the company said.

Following the merger, Net2Phone will be a privately held, wholly-owned subsidiary of IDT. The transaction has been approved unanimously by both companies' boards of directors. In addition, the IDT statement said, because it holds 87.2% of the voting poewr off Net2Phone's outstanding shares, as of Feb. 1, the approval of other shareholders is not required.