Local Internet firm
sold for $950,000

The purchase by DONOBi will
help the company expand

A Hilo-based Internet service provider that has about 4,000 customers in Hawaii, KOA Internet Inc., has been acquired by DONOBi Inc., of Bremerton, Wash., for $950,000.

Jay Kokora, former co-owner of KOA Internet, which does business as Hawaiian.net, said he and his two partners agreed to the acquisition because DONOBi has technology and financial resources that will enable him to expand KOA Internet's services in Hawaii.

"My job is to grow our Hawaii assets, which means we're interested in acquiring other local Internet service providers and in marketing this fabulous brand name throughout the state," said Kokora, who now is vice president of business development for DONOBi.

Kokora said he and his partners bought 8-year-old Hawaiian.net about 2 1/2 years ago. He subsequently expanded the company through the purchase of InterPacific Network Services in Hilo, where the company now is based, and then through the purchase of Kahala.net on Oahu. The company has five employees.

Bill Wright, chairman and chief executive of Donobi, said Donobi is a publicly held company with about 30 employees and annual revenues in 2004 of about $2.5 million.

The company is "all about connectivity," Wright said. As a result of a series of acquisitions and mergers, he said, the company is involved in voice, digital television, wireless and data services.

Wright said financing for the acquisition of KOA Internet was obtained through private equity fund Highgate House, based in New York, and also allowed DONOBi to retire $300,000 in previous debt.

KOA Internet was represented in the transaction by New Commerce Communications, based in Cape Coral, Fla.