Hawaiian Telcom announced yesterday that it signed a definitive purchase agreement to acquire inter-island submarine and middle-mile terrestrial fiber infrastructure assets currently owned by the bankruptcy estate of the Paniolo Cable Company. Hawaiian Telcom will acquire the assets for a total purchase price of $50 million, which the company will pay through a combination of $25 million in cash and $25 million in committed purchase money financing. The transaction, which is subject to customary closing conditions, including approval of the bankruptcy court and federal regulatory authorities, is expected to close in the third quarter of 2021.
The carrier said the addition of this fiber infrastructure, which is the newest inter-island system serving Hawaii, will augment its existing backbone network and increase the company’s total submarine and terrestrial fiber footprint by more than 400 miles. The acquisition will enable access to these underutilized assets, strengthen the diversity of network connections, and support Hawaiian Telcom’s continued broadband expansion statewide.
“As a leading local broadband provider, we are committed to continuing to invest in Hawaii and deliver fast, reliable broadband service to residents and businesses across the islands,” said Su Shin, President and General Manager of Hawaiian Telcom. “The COVID-19 pandemic has highlighted the critical importance of connectivity. This acquisition will advance our goal of strengthening and expanding broadband access in support of economic development, education and quality-of-life initiatives throughout our state.”