LV firm sold for $40 million

International Exchange Communications Inc., a retail subsidiary of Burlingame, Calif.-based Pacific Gateway Exchange Inc., has acquired the international division of NOS Communications for $40 million in stock and cash.

Pacific Gateway provides international telecommunications for long-distance service providers worldwide as well as on a retail basis.

NOS Communications, which has 1,700 employees in Nevada, California, Florida, Colorado and Oregon, has two Las Vegas operations totaling 124,000 square feet. NOS officials said none of NOS's Las Vegas operations will be affected by the sale.

Pacific Gateway will incorporate the billing and back-office functions of NOS, which has about 75,000 customers, increasing the company's customer total to about 300,000.

NOS, which has been in operation since 1989, markets to U.S.-based small offices and home offices and high-volume international retail customers. It has had a seven-year relationship with what is now MCI WorldCom, which is expected to expand to offer local telephone and Internet access service.

For nine months through Sept. 30, Pacific Gateway reported $450.2 million in revenues and net income of $10.2 million. This morning, the company's stock was down $1.06 to $15.44.

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