Cincinnati Bell is to acquire Hawaiian Telcom, the integrated communications provider serving the US state of Hawaii, for a total consideration of approximately $650 million. Shareholders will be paid 60% in cash and 40% in Cincinnati Bell common stock for their holdings…
Cincinnati Bell is to acquire Hawaiian Telcom, the integrated communications provider serving the US state of Hawaii, for a total consideration of approximately $650 million. Shareholders will be paid 60% in cash and 40% in Cincinnati Bell common stock for their holdings.
The merger with Hawaiian Telcom will combine Hawaiian Telcom's 1,300 employees with Cincinnati Bell's 3,000. The distance between the two operators and their separate operations means this merger is not expected to materially impact jobs in Hawaii. Cincinnati Bell has committed to investing in Hawaiian Telcom's next-generation fibre network across the state. US operators are currently investing substantially in their next generation fibre networks.
Cincinnati Bell and Hawaiian Telcom will retain their names and separate brand identities while sharing best practices and resources to the benefit of both companies. The move follows other consolidation in the US market between operators. In June, cable company RCN Telecom agreed a US$2.4bn deal with Wave and mergers involving cable companies and wireless operators are being discussed.
The companies' combined fibre networks will exceed 14,000 fibre route miles. In addition, Hawaiian Telcom provides the company with direct access to the 2.6 terabit Trans-Pacific fibre capacity linking Asia and the US, which expands Cincinnati Bell's route diversity and gives the combined company exposure to large, data-hungry demographics on both sides of the Pacific.
Cincinnati Bell has also signed a definitive agreement to acquire OnX Enterprise Solutions, a technology services and solutions provider in North America and the United Kingdom, for approximately US$201 million in cash on a cash-free, debt-free basis. The deal will expand the company's footprint to more than 20 IT sales offices and provide access to 50 data centres through strategic partners, significantly increasing Cincinnati Bell's presence in the US and Canada.