Santa Barbara, California-based long distance telecoms wholesaler Star Telecommunications Inc is acquiring United Digital Network Inc for $25m in Star shares. Star is attempting to follow WorldCom Inc’s path to the big time, by acquiring other telecoms companies solely with its shares. It acquired LD Services Inc in May for around $5m in shares (CI No 3,240) and plans to continue expanding through acquisition. Dallas, Texas-based United Digital is a competitive business-orientated long distance telcoms company which also sells calling card and data services. Star made revenues of over $240m in the first nine months, and expects the acquisition of UDN to be accretive in fiscal 1998.
