CHICAGO, June 3, 2024
/PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE: TDS), today
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.
About OneNeck - 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.
About TDS
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.
About US Signal
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. For
more information, visit www.ussignal.com. US Signal is a
portfolio company of Igneo Infrastructure Partners.
Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995: All information set
forth in this news release, except historical and factual
information, represents forward-looking statements. This includes
all statements about the company's plans, beliefs, estimates, and
expectations. These statements are based on current estimates,
projections, and assumptions, which involve certain risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. Important factors
that may affect these forward-looking statements include, but are
not limited to: whether any strategic alternatives for UScellular
will be successfully identified or completed; whether any such
strategic alternative will result in additional value for TDS or
its shareholders and whether the process will have an adverse
impact on TDS' businesses; intense competition; the ability to
attract people of outstanding talent throughout all levels of the
organization; TDS' smaller scale relative to larger competitors;
changes in demand, consumer preferences and perceptions, price
competition, or churn rates; advances in technology; impacts of
costs, integration problems or other factors associated with
acquisitions, divestitures or exchanges of properties or wireless
spectrum licenses and/or expansion of TDS' businesses; the ability
of the company to successfully construct and manage its networks;
difficulties involving third parties with which TDS does business;
uncertainties in TDS' future cash flows and liquidity and access to
the capital markets; the ability to make payments on TDS and
UScellular indebtedness or comply with the terms of debt covenants;
the effect on TDS' business if the collateral securing its secured
term loan is foreclosed upon; conditions in the U.S.
telecommunications industry; the value of assets and investments;
the state and federal regulatory environment; pending and future
litigation; cyber-attacks or other breaches of network or
information technology security; control by the TDS Voting Trust;
disruption in credit or other financial markets; deterioration of
U.S. or global economic conditions; and the impact, duration and
severity of public health emergencies. Investors are encouraged to
consider these and other risks and uncertainties that are more
fully described under "Risk Factors" in the most recent filing of
TDS' Form 10-K, as updated by any TDS Form 10-Q filed subsequent to
such Form 10-K.
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SOURCE Telephone and Data Systems, Inc.