TDS set to sell its OneNeck Business to US Signal

Telephone and Data Systems, Inc. (TDS), has announced the entry into a definitive agreement to sell its wholly owned subsidiaries OneNeck IT Solutions LLC and OneNeck Data Center Holdings LLC (together, "OneNeck") to US Signal Company, LLC. The transaction is subject to the satisfaction of customary closing conditions and is expected to close in the third quarter of 2024. No terms were disclosed.

US Signal is acquiring all of the OneNeck operations, including its data centers and cloud hosting and the solutions provider operations.

"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 Executive Vice President and CFO. "The sale of OneNeck provides additional capital that can be used to support TDS Telecom's fiber program, which includes investing in communities throughout the US with quality broadband connectivity. I believe that OneNeck's business complements US Signal and I am excited about future opportunities for both associates and the operations."

The proceeds will be used for general corporate purposes, including the advancement of TDS' fiber program.

TDS was advised by TD Securities as its sole financial advisor.

OneNeck IT Solutions LLC and OneNeck Data Center Holdings LLC offer hybrid IT solutions including cloud and hosting solutions, managed services, enterprise application management, advanced IT services, hardware and software resale, and local connectivity via top-tier data centers in Arizona, Colorado, Iowa, Minnesota, Oregon and Wisconsin. OneNeck's team of technology professionals manage secure, world-class, hybrid IT infrastructures and applications for businesses around the country.

Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, provides wireless; broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 8,600 people as of March 31, 2024.

US Signal, founded in 2001, is a leading digital infrastructure provider, offering connectivity, cloud hosting, colocation, data protection, and disaster recovery services powered by its wholly owned and operated robust fiber network. US Signal also helps customers optimize their IT resources through the provision of managed and professional services.