Digital infrastructure provider US Signal will acquire OneNeck Data Center Holdings LLC from Telephone and Data Systems (TDS).
Terms of the deal have not been disclosed, but the transaction is expected to close in Q3 2024.
US Signal, based in Grand Rapids, Michigan, provides data center, cloud hosting, and colocation services. The company operates a 9,500-mile fiber network and has nine data centers across Michigan, Illinois, Indiana, and Wisconsin.
The acquisition will add six more data centers to US Signal’s footprint. OneNeck’s data centers are in Phoenix, Arizona; Denver, Colorado; Madison, Wisconsin; Minneapolis, Minnesota; Des Moines, Iowa; and Bend Oregon.
Only the data centers in Minnesota, Iowa, and Wisconsin will be connected to US Signal’s fiber network.
TDS-owned OneNeck also provides multi-cloud solutions to more than 1,000 customers in the banking, education, engineering, healthcare, and manufacturing sectors.
“We were attracted to OneNeck for a host of reasons, with our shared culture of customer service excellence at the top of the list. OneNeck is also a product innovator with deep knowledge of numerous industries. Together, we will provide our customers with greater scale and technical abilities,” said Daniel Watts, CEO of US Signal.
Vicki L. Villacrez, TDS executive VP and CFO, added: “As part of our capital allocation process, we are prioritizing assets to determine what is strategic and can improve our competitiveness. The sale of OneNeck provides additional capital that can be used to support TDS Telelcom’s fiber program, which includes investing in communities throughout the US with quality broadband connectivity.”
Chicago-based telco TDS provides wireless and broadband services across the US. The company operated three business units: TDS Telecom, UScellular, and OneNeck. The sale of its OneNeck unit comes days after TDS announced plans to sell its UScellular business to T-Mobile.
Founded in 2001, US Signal was acquired by Igneo Infrastructure Partners in February 2023. At the end of last year, US Signal acquired a data center in Indianapolis, Indiana.
