‘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,’ says TDS CFO Vicki L. Villacrez.

US Signal, a data center services, cloud and connectivity company, said Monday it plans to buy OneNeck IT Solutions and OneNeck Data Center Holdings from the 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 the price of the deal have not been disclosed, a spokesperson for US signal told CRN.

TDS, founded as Telephone and Data Systems Inc., said it is ready to move on from 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 are prioritizing assets to determine what is strategic and can improve our competitiveness,” Villacrez said in a statement. “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.”

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

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

The deal will grow US Signal’s markets to the West Coast of the U.S. with data center in Phoenix, Denver, and Bend, Ore. If it wins approval, a buyout of OneNeck will also give US Signal additional fiber network markets in Madison, Wisc., Minneapolis, and Des Moines, all while tripling the total wattage that US Signal has under management.

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

OneNeck offers hybrid IT and multicloud solutions through data centers in the western and midwestern states. OneNeck says it caters to its1,000 customers across 45 states, in sectors that include banking, education, engineering, food and beverage, government, healthcare, manufacturing, and retail.

US Signal is a 23-year-old provider of digital infrastructure that offers connectivity, cloud hosting, colocation and BDR services powered by its own fiber network. Its customers include regional and large national enterprise customers which operate on US Signal’s 9,500 miles of network fiber and data centers currently in Michigan, Illinois, Indiana and Wisconsin.