POSTED: 12:16 p.m. HST, Jul 12, 2012
LAST UPDATED: 01:44 p.m. HST, Jul 12, 2012
Hawaiian Telcom said today it will pay $13 million to buy Wavecom Solutions Corp., a Honolulu-based information technology company.
The acquisition will give Hawaiian Telcom access to Wavecom’s fiber optic network that run between the main Hawaiian islands. Wavecom serves more than 1,700 customers statewide.
"Wavecom Solutions and Hawaiian Telcom have been collaborating for years to serve growing customer demand for high speed Internet bandwidth and advanced communications,” stated Eric Yeaman, president and chief executive officer of Hawaiian Telcom. "By integrating Wavecom Solutions’ six-island subsea and terrestrial fiber network and business capabilities with the strength of Hawaiian Telcom’s technology and operations, we’ll be better positioned to execute on our strategic plan and drive long-term value for shareholders."
Hawaiian Telcom said it will pay cash for Wavecom’s stock. Officials said the transaction will generate an estimated $4.5 million of annual cash flow for Hawaiian Telcom after it integrates Wavecom’s operations.
The acquisition remains subject to federal and state regulatory approvals, which are expected to take 90 to 120 days.