Hawaiian Telcom Acquiring SystemMetrics
(FinancialWire via COMTEX) --
Hawaiian Telcom Acquiring SystemMetrics
September 15, 2013 (FinancialWire) -- Communications company Hawaiian Telcom Holdco Inc. (NASDAQ: HCOM) has reportedly entered into a definitive agreement to acquire SystemMetrics Corporation in a cash transaction valued at approximately $16 million. SystemMetrics currently generates annual revenues of approximately $8 million and pro-forma EBITDA of approximately $2 million, according to Hawaiian Telecom's announcement.
SystemMetrics will become a wholly-owned subsidiary of Hawaiian Telcom Services Company Inc., according to the terms of the agreement.
SystemMetrics, headquartered in Honolulu, is a data center services provider focused on enterprise-class colocation and cloud-computing solutions for small and medium-sized business customers, as well as large enterprises. The company reportedly operates a facility in Honolulu with up to 6,500 square feet of data center capacity and room for expansion. The facility was established in 2011 and uses energy efficient technology to serve more than 400 customers, according to the company.
Two trends driving growth in data center services are adoption of cloud-based technologies by business customers to run business functions, and the demand for outsourced solutions. Hawaiian Telcom cites market research estimates projecting the Hawaii data center services opportunity to be over $100 million.
Hawaii's companies are reportedly managing significant amounts of mission critical data, network applications and security services. By partnering with experts in data center services and communications infrastructure management, companies can focus on growing their business, noted Hawaiian Telcom officials.
Hawaiian Telcom said it is targeting completion of the transaction by September 30th.
Hawaiian Telcom Holdco (approx. market cap. US$ 268.8 mil.) provides communications services and products in Hawaii. The company operates through the two segments of Wireline Services and Other. It serves residential and business customers in the islands of Oahu, Maui, Hawaii, Kauai, Molokai and Lanai. The company was founded in 1883 and is headquartered in Honolulu. Hawaiian Telcom employs approximately 1,377 people.
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Stocks: Hawaiian Telcom Holdco Incorporated (NASDAQ: HCOM)
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