Hawaiian Telcom has signed a definitive purchase agreement to buy interisland submarine and middle-mile terrestrial fiber infrastructure assets currently owned by the bankruptcy estate of Paniolo Cable Co. for $50 million.

The transaction for $25 million in cash and $25 million in committed purchase money financing is subject to customary closing conditions, including approval of the bankruptcy court and federal regulatory authorities, and is expected to close in the third quarter of 2021.

Hawaiian Telcom said the addition of the fiber infrastructure will enhance the company’s existing network and increase its 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 Hawai‘i and deliver fast, reliable broadband service to residents and businesses across the islands,” Hawaiian Telcom President and General Manager Su Shin said in a statement. “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.”

Since 2010, Hawaiian Telcom has invested more than $500 million in expanding its statewide fiber network and has deployed broadband infrastructure across 178,000 locations, including 10,000 homes and businesses in rural areas across the state’s neighboring islands.

Hawaiian Telcom has agreed to maintain the Paniolo network prior to the close of the asset acquisition, enabling Sandwich Isles Communications, which is not part of the acquisition, the ability to appropriately service its customer base, which includes its customers on Hawaiian home lands.