TDS plans to chop off OneNeck after T-Mobile Deal News

“The sale of OneNeck provides additional capital that can be used to support TDS Telecom’s fiber program, including investing in U.S. communities with high-quality broadband connectivity,” said TDS CFO Vicki L. Villacrez.

US Signal, a data center services, cloud and connectivity company, said Monday it plans to acquire OneNeck IT Solutions and OneNeck Data Center Holdings from publicly traded TDS, according to statements from both companies.

The acquisition news comes about a week after T-Mobile announced it would pay $4.4 billion for the combined assets of US Cellular and TDS. OneNeck IT Solutions was named to CRN’s 2024 list of the MSP Elite 150.

The terms and price of the deal were not disclosed, a US Signal spokesperson told CRN.

TDS, incorporated as Telephone and Data Systems Inc., said it is ready to exit OneNeck IT Solutions in favor of a long-term strategy around fiber, TDS executive vice president and CFO Vicki Villacrez said in a statement about the deal.

“As part of our capital allocation process, we prioritize assets to determine what is strategic and can improve our competitive position,” Villacrez said in a statement. “The sale of OneNeck provides additional capital that can be used to support TDS Telecom’s fiber program, including investments in U.S. communities with high-quality broadband connectivity. I believe OneNeck’s business is complementary to US Signal and I am excited about future opportunities for both the employees and the business.”

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Grand Rapids, Michigan-based US Signal said that if the deal is approved by regulators, it will quadruple the square footage of its data center operations and increase the number of data center properties from nine to 15.

“We were attracted to OneNeck for many reasons, with our shared culture of customer service excellence at the top of the list,” said Daniel Watts, CEO of US Signal, according to a statement. “OneNeck is also a product innovator with deep knowledge of numerous industries. Together we will bring greater scale and technical capabilities to our customers.”

The deal will expand US Signal’s markets to the US West Coast with data centers in Phoenix, Denver and Bend, Oregon. If the deal is approved, an acquisition of OneNeck US Signal will also provide additional fiber network markets in Madison, Wisc. , Minneapolis and Des Moines, all while tripling the total wattage under control of US Signal.

“US Signal is known for putting its customers first and supporting their rapidly evolving needs,” OneNeck CEO Ted Wiessing said in a statement accompanying the deal. “OneNeck customers will benefit greatly from our combined capabilities and US Signal’s commitment to invest in growth.”

OneNeck offers hybrid IT and multi-cloud solutions through data centers in the Western and Midwestern states. OneNeck says it serves its 1,000 customers in 45 states in industries including banking, education, engineering, food and beverage, government, healthcare, manufacturing and retail.

US Signal is a 23-year-old digital infrastructure provider offering connectivity, cloud hosting, colocation and BDR services powered by its proprietary fiber optic network. Customers include regional and large national enterprise customers operating on US Signal’s 9,000 miles of network fiber and data centers, currently located in Michigan, Illinois, Indiana and Wisconsin.