Digital Island buyout continues

Advertiser Staff

Cable & Wireless Plc. said yesterday that it purchased the majority of stock in former Honolulu-based Digital Island Inc. and will complete the takeover in the third quarter of this year.

The U.K. owner of the third-biggest network for Internet service providers received offers to buy 80 percent of Digital Island's stock by the deadline at midnight yesterday EDT. It extended the offer until July 17.

Cable & Wireless agreed last month to buy San Francisco-based Digital Island for $340 million in cash and assumed debt to manage Web sites for more multinational customers.

Digital Island was founded in Hawai'i but moved to California be closer to customers and investment capital.