Hawaiian Telcom acquires Wavecom Solutions
Jan 01, 2013 (The Honolulu Star-Advertiser - McClatchy-Tribune Information Services via COMTEX) --
Hawaiian Telcom said Monday it has completed its acquisition of Honolulu-based telecommunications provider Wavecom Solutions for $9.6 million.
The deal gives Hawaiian Telcom access to Wavecom's interisland fiber-optic network -- a move that will allow Hawaiian Telcom to expand its broadband Internet and video services across the state.
Wavecom, founded in 2001 as Pacific Lightnet, offers a range of voice and data services to mostly small and medium-size businesses as well as other telecom carriers. Wavecom has about 60 employees and 1,700 customers statewide.
"We are pleased that the acquisition has closed and we can welcome Wavecom Solutions' employees and loyal customers into our Hawaiian Telcom Family," Eric Yeaman, Hawaiian Telcom CEO, said in a news release issued Monday. "By adding Wavecom Solutions' fiber network and business capabilities to our technology and operations we'll enhance our ability to serve growing customer demand for high-speed Internet and advanced communications," Yeaman said.
Hawaiian Telcom announced in July its plan to buy the stock of Wavecom. Regulatory approvals from the Federal Communications Commission and the state Public Utilities Commission were obtained Friday.
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 annual earnings before interest, tax, depreciation and amortization of $3.5 million.
The acquisition is not expected to have an impact on competition or prices paid by consumers in the Hawaii market, according to the PUC's ruling.
"The proposed transaction should strengthen and enhance (Hawaiian Telcom) operations, and improve their ability to continue to provide telecommunications services in the state, which is in the public interest," the PUC commissioners wrote.
Hawaiian Telcom's shares closed up 34 cents at $19.50 Monday on the Nasdaq Global Market.
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