Hawaiian Telcom today announced that it has entered into a definitive agreement to acquire SystemMetrics Corporation. The cash transaction is valued at approximately $16 million, according to Hawaiian Telcom, and is subject to adjustments and provisions.
SystemMetrics is a Honolulu-based data center firm that currently generates annual revenues of approximately $8 million, and will become a wholly-owned subsidiary of Hawaiian Telcom Services Company.
SystemMetrics focuses on enterprise-class colocation and cloud-computing solutions for small and medium-sized business customers, as well as large enterprises. The company operates a state-of-the-art facility in Honolulu with up to 6,500 square feet of data center capacity and room for expansion. The best-in-class facility was established in 2011 and uses the newest and most energy efficient technology to serve more than 400 customers.
â€œThis is a real exciting opportunity for Hawaiian Telcom and will enable us to accelerate our overall growth strategy,â€ said Eric K. Yeaman, Hawaiian Telcomâ€™s president and CEO. â€œOur goal is to be the preeminent cloud and colocation services provider in the State of Hawaii, and this acquisition significantly advances that objective by increasing the scale and scope of our existing data center business and improving time to market. Additionally, it complements our existing portfolio of business service offerings and better positions us to execute on our overall strategic plan and drive value for shareholders.â€
â€œWith this transaction we reach a significant milestone for SystemMetrics as we join Hawaiian Telcom with a shared vision to transform and accelerate data center services in Hawaii,â€ said Earl E. Ford, SystemMetricsâ€™ president and CEO. â€œHawaiian Telcomâ€™s significant resources and commitment to strengthen its position in the data center market, and demonstrated success in serving the technology needs of Hawaiiâ€™s business community makes it an ideal match for us.â€
Two important trends driving growth in data center services are rapid adoption of cloud-based technologies by business customers to run their most important business functions, and the accelerating demand for outsourced solutions. Market research estimates the Hawaii data center services opportunity is over $100 million. Hawaiiâ€™s companies are managing massive amounts of mission critical data, network applications and security services. By partnering with experts in data center services and communications infrastructure management such as Hawaiian Telcom and SystemMetrics, companies can focus on growing their business.
â€œOur two companies share similar values and are committed to technology innovation and superior customer service,â€ commented Yeaman. â€œLeveraging these shared values and the critical skills and knowledge of both organizations with our multi-site, multi-island facilities will better position us to meet the needs of our customers and capitalize on the key opportunities that exist in the marketplace.â€
Hawaiian Telcom is targeting completion of the transaction by September 30, 2013.