US Signal, based in Grand Rapids, MI, and a portfolio company of Igneo Infrastructure Partners, has entered into a definitive agreement to acquire OneNeck IT Solutions LLC and OneNeck Data Center Holdings LLC (OneNeck) from Telephone and Data Systems, Inc. (NYSE: TDS). TDS is the parent company of regional mobile network operator, UScellular (NYSE: USM), and internet service provider, TDS Telecom.
US Signal is acquiring all of the OneNeck operations, including its data centers and cloud hosting and the solutions provider operations. The firms expect the transaction to close in the third quarter of 2024, subject to customary closing conditions. Transaction terms were not disclosed.
Headquartered in Madison, WI, OneNeck operates six data centers located in Arizona, Colorado, Iowa, Minnesota, Oregon and Wisconsin. The company serves over 1,000 customers across 45 states in banking, education, engineering, food and beverage, government, healthcare, manufacturing, and retail.
US Signal provides data center, connectivity, cloud hosting, colocation, data protection, and disaster recovery services to regional enterprise customers and large national telecommunications carriers. It operates a 9,500-route mile fiber network and has nine data centers across Michigan, Illinois, Indiana and Wisconsin.
The acquisition will: increase the number of US Signal data centers from nine to 15, quadrupling square footage; extend US Signal’s footprint to the West Coast with the addition of Phoenix, AZ; Denver, CO; and Bend, OR data centers; add OneNeck’s Madison, WI; Minneapolis, MN; and Des Moines, IA markets to US Signal’s fiber network; and, more than triple commercial power under management
“As part of our capital allocation process, we are prioritizing assets to determine what is strategic and can improve our competitiveness,” said Vicki L. Villacrez, TDS EVP and CFO.
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