HONOLULU, Dec. 31, 2012 (GLOBE NEWSWIRE) -- Hawaiian Telcom Holdco, Inc. (Nasdaq:HCOM), Hawaii's leader in integrated communications solutions, today announced that its Hawaiian Telcom, Inc. subsidiary has completed the acquisition of all of the capital stock of Wavecom Solutions Corporation (Wavecom Solutions), an information and communications technology company and facilities-based competitive local exchange carrier headquartered in Honolulu. Wavecom Solutions provides voice, data and converged services to small and medium-sized business and carrier customers through a six-island subsea and terrestrial fiber network.
"We are pleased that the acquisition has closed and we can welcome Wavecom Solutions' employees and loyal customers into our Hawaiian Telcom family," stated Eric K. Yeaman, President and CEO of Hawaiian Telcom. "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 bandwidth and advanced communications."
With the acquisition complete and as integration of Wavecom Solutions' fiber network occurs, Hawaiian Telcom's network capabilities will be enhanced through augmentation of fiber capacity and diversity statewide. The company will be better positioned to deliver next generation, end-to-end solutions to customers throughout Hawaii and drive long-term value for shareholders.Hawaiian Telcom first announced the definitive purchase agreement to acquire Wavecom Solutions on July 12, 2012. Approvals from the Federal Communications Commission and Hawaii Public Utilities Commission were obtained on December 28, 2012. The stock purchase transaction closed today (Dec. 31, 2012) at a purchase price of approximately $9.6 million (subject to adjustment based on final working capital calculations), paid with existing liquidity using cash on hand. It is estimated that the transaction will generate approximately $4.5 million of annual unlevered free cash flow upon completion of integration activities as a result of net incremental revenues and EBITDA of approximately $7 million and $3.5 million, respectively, as well as network related capital expenditure synergies.