Hawaiian Telcom will be able to accelerate the expansion of its "next generation" services across the state with its planned acquisition of Hono­lulu-based Wavecom Solutions Corp.

The state’s largest telecommunications company announced Thursday that it is buying the stock of Wavecom Solutions for $13 million. The deal, subject to regulatory approval, is expected to close in three to four months.

Wavecom, which was founded in 2001 as Pacific Lightnet, has an interisland fiber-optic network and offers a range of voice and data services to small and medium-size businesses as well as other telecom carriers. Wavecom has 1,700 customers statewide.

The deal looks to be positive for Hawaiian Telcom on several fronts, said Barry McCarver, an analyst who follows the company for financial services firm Stephens Inc.

"It’s good for Hawaiian Telcom because it takes a competitor out of the market. In addition they pick up some fiber-optic lines between the islands rather than having to build it themselves, which is accretive to cash flow," McCarver said.

Hawaiian Telcom crews have been working to lay fiber-optic lines on Oahu needed to support the company’s broadband and Internet television services. The TV service, rolled out last July, is only available in some areas on Oahu that have fiber-optic lines.

"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 CEO Eric Yeaman said in a news release.

Although it can sometimes be difficult to come up with a market price for companies in isolated markets like Hawaii, the $13 million paid by Hawaiian Telcom appears to be favorable when measured by traditional valuation methods, McCarver said.

Hawaiian Telcom estimated the integration of Wavecom into its operations will generate $4.5 million of cash flow annually before debt payments are factored in. The company also projected that the transaction would produce earnings before interest, tax, depreciation and amortization of $3.5 million.

Both figures indicate that Hawaiian Telcom got a good price for Wavecom, McCarver said. "It feels like Hawaiian Telcom got the better of the deal," he said.

The announcement was made after the market closed. Hawaiian Telcom’s shares closed down 19 cents at $19.14 Thursday on the Nasdaq Global Market.