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US Signal Completes Acquisition of OneNeck

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US Signal, a digital infrastructure provider, has completed its acquisition of OneNeck IT Solutions from Telephone and Data Systems, Inc. (NYSE: TDS). This strategic move significantly expands US Signal's capabilities and reach:

- Increases data centers from 10 to 16, quadrupling square footage
- Extends footprint to the West Coast (Phoenix, Denver, Bend)
- Adds Madison, Minneapolis, and Des Moines markets to fiber network
- More than triples commercial power under management

OneNeck serves over 1,000 customers across 45 states in various sectors. The combined entity aims to enhance client service excellence and provide more capabilities to meet evolving customer needs.

US Signal, un fornitore di infrastrutture digitali, ha completato l'acquisizione di OneNeck IT Solutions da Telephone and Data Systems, Inc. (NYSE: TDS). Questa mossa strategica espande significativamente le capacità e la portata di US Signal:

- Aumento dei data center da 10 a 16, quadruplicando la superficie
- Estensione della presenza sulla costa occidentale (Phoenix, Denver, Bend)
- Aggiunta dei mercati di Madison, Minneapolis e Des Moines alla rete in fibra
- Più di tre volte la potenza commerciale sotto gestione

OneNeck serve oltre 1.000 clienti in 45 stati in vari settori. L'entità combinata mira a migliorare l'eccellenza nel servizio clienti e fornire maggiori capacità per soddisfare le esigenze in evoluzione dei clienti.

US Signal, un proveedor de infraestructura digital, ha completado la adquisición de OneNeck IT Solutions de Telephone and Data Systems, Inc. (NYSE: TDS). Este movimiento estratégico expande significativamente las capacidades y el alcance de US Signal:

- Aumenta el número de centros de datos de 10 a 16, cuadruplicando la superficie
- Extiende su huella a la Costa Oeste (Phoenix, Denver, Bend)
- Agrega los mercados de Madison, Minneapolis y Des Moines a la red de fibra
- Más de tres veces la potencia comercial bajo gestión

OneNeck atiende a más de 1.000 clientes en 45 estados en varios sectores. La entidad combinada busca mejorar la excelencia en el servicio al cliente y proporcionar más capacidades para satisfacer las necesidades en evolución de los clientes.

US Signal, 디지털 인프라 제공업체,가 Telephone and Data Systems, Inc. (NYSE: TDS)로부터 OneNeck IT Solutions의 인수를 완료했습니다. 이 전략적 조치는 US Signal의 역량과 범위를 상당히 확장합니다:

- 데이터 센터를 10개에서 16개로 증가시켜 면적을 4배로 확장
- 서부 해안으로의 확장(피닉스, 덴버, 벤드)
- 매디슨, 미니애폴리스를 추가하여 섬유 네트워크에 데스 모인을 포함
- 관리 중인 상업용 전력을 3배 이상 증가

OneNeck는 다양한 분야에서 45개 주에 걸쳐 1,000명 이상의 고객에게 서비스를 제공합니다. 통합된 실체는 고객 서비스의 우수성을 향상하고 진화하는 고객의 요구를 충족하기 위한 더 많은 기능을 제공하는 것을 목표로 합니다.

US Signal, un fournisseur d'infrastructures numériques, a achevé l'acquisition de OneNeck IT Solutions auprès de Telephone and Data Systems, Inc. (NYSE: TDS). Ce mouvement stratégique augmente considérablement les capacités et l'étendue de US Signal :

- Augmente le nombre de centres de données de 10 à 16, quadruplant la superficie
- Étend sa présence sur la côte ouest (Phoenix, Denver, Bend)
- Ajoute les marchés de Madison, Minneapolis et Des Moines au réseau de fibre optique
- Triple plus de puissance commerciale sous gestion

OneNeck sert plus de 1 000 clients dans 45 États dans divers secteurs. L'entité combinée vise à améliorer l'excellence du service client et à offrir plus de capacités pour répondre aux besoins évolutifs des clients.

US Signal, ein Anbieter digitaler Infrastrukturen, hat die Übernahme von OneNeck IT Solutions von Telephone and Data Systems, Inc. (NYSE: TDS) abgeschlossen. Dieser strategische Schritt erweitert die Möglichkeiten und Reichweite von US Signal erheblich:

- Anzahl der Rechenzentren von 10 auf 16 erhöht, damit die Fläche vervierfacht
- Reichweite an die Westküste ausgedehnt (Phoenix, Denver, Bend)
- Fügt die Märkte Madison, Minneapolis und Des Moines zum Glasfasernetz hinzu
- Kommerzielle Leistung unter Verwaltung mehr als verdreifacht

OneNeck bedient über 1.000 Kunden in 45 Bundesstaaten in verschiedenen Sektoren. Die kombinierte Einheit zielt darauf ab, die Exzellenz im Kundenservice zu verbessern und mehr Möglichkeiten anzubieten, um den sich entwickelnden Kundenbedürfnissen gerecht zu werden.

Positive
  • Acquisition expands US Signal's data center footprint from 10 to 16 locations
  • Quadruples square footage of data center space
  • Extends US Signal's presence to the West Coast
  • Adds three new markets to US Signal's fiber network
  • More than triples commercial power under management
  • Gains access to OneNeck's diverse customer base across 45 states
Negative
  • None.

Insights

The acquisition of OneNeck by US Signal is a significant strategic move that substantially expands US Signal's market presence and service capabilities. This deal triples the company's commercial power management and quadruples its data center square footage, indicating a major boost in operational capacity.

The expansion to the West Coast markets of Phoenix, Denver and Bend is particularly noteworthy, as it gives US Signal a truly national footprint. This geographical diversification could lead to increased revenue streams and improved risk management. The addition of OneNeck's 1,000+ customer base across 45 states also presents significant cross-selling opportunities.

While financial terms weren't disclosed, the scale of this acquisition suggests it's a substantial investment that could impact US Signal's short-term financials but potentially drive long-term growth and profitability.

This acquisition positions US Signal as a more formidable player in the hybrid IT and multi-cloud solutions market. By integrating OneNeck's expertise, US Signal can now offer a more comprehensive suite of services, including enhanced data protection and disaster recovery capabilities.

The expanded data center network, now totaling 16 facilities, provides improved redundancy and lower latency for customers, important factors in today's data-intensive business environment. The 9,500-route mile fiber network combined with the new data centers creates a robust infrastructure that can support advanced services like edge computing and 5G applications.

This move aligns with the industry trend of consolidation to achieve scale and technological synergies, potentially enabling US Signal to compete more effectively with larger national providers.

The acquisition strategically positions US Signal in high-growth sectors such as banking, healthcare and government, which have increasing demands for secure and compliant IT infrastructure. This diversification across industries could provide more stable revenue streams and reduce sector-specific risks.

The expanded geographical footprint, now covering both the Midwest and West Coast, allows US Signal to tap into new markets and potentially capture a larger share of the estimated $250 billion U.S. data center market. However, integration challenges and potential cultural differences between the two companies could pose short-term hurdles.

Investors should monitor how effectively US Signal leverages this expanded capacity and customer base to drive growth, as well as any potential shifts in market share among regional and national competitors in response to this consolidation.

GRAND RAPIDS, Mich., Sept. 3, 2024 /PRNewswire/ -- US Signal Company, LLC (US Signal), a leading digital infrastructure provider and portfolio company of Igneo Infrastructure Partners, has completed its acquisition of OneNeck IT Solutions LLC and OneNeck Data Center Holdings LLC (OneNeck) from Telephone and Data Systems, Inc. (NYSE: TDS), a provider of wireless, broadband, video, voice, hosted and managed services to U.S. businesses.

Headquartered in Madison, Wisconsin, OneNeck provides secure hybrid IT and multi-cloud solutions through data centers in six Western and Midwestern states. Serving more than 1,000 customers across 45 states, OneNeck caters to sectors including banking, education, engineering, food and beverage, government, healthcare, manufacturing, and retail.

Grand Rapids, Michigan-based US Signal provides data center colocation, connectivity, cloud hosting, 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 10 data centers across Michigan, Illinois, Indiana and Wisconsin.

The acquisition:

  • Increases the number of US Signal data centers from 10 to 16, quadrupling square footage
  • Extends US Signal's footprint to the West Coast with the addition of Phoenix, Arizona; Denver, Colorado; and Bend, Oregon data centers
  • Adds OneNeck's Madison, Wisconsin; Minneapolis, Minnesota; and Des Moines, Iowa markets to US Signal's fiber network, and
  • More than triples commercial power under management

"We welcome our new colleagues to the US Signal team," said Daniel Watts, CEO. "Together, we will provide customers with more capabilities to serve their evolving needs while maintaining our combined culture of client service excellence."

US Signal was advised by the law firm of Mayer Brown. Its financial advisor was DC Advisory, and Texas Capital Securities served as the Exclusive Placement Agent.

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.

About Igneo Infrastructure Partners

Igneo is an autonomous investment team in the First Sentier Investors Group. It invests in high-quality, mature, mid-market infrastructure companies in renewables, digital infrastructure, waste management, water utilities and transportation/logistics sectors in North America, the UK, Europe, Australia and New Zealand. Operating since 1994, the team works closely with portfolio companies to create long-term sustainable value through innovation, a focus on responsible investment and proactive asset management. As of June 30, 2024, Igneo managed more than $19.2 billion in assets for 200 investors around the world. For more information, visit igneoip.com. 

Media inquiries
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Important information

This press release is intended for information only, aimed solely at the media and should not be further distributed to individual and/or corporate investors, and financial advisers and/or distributors. The information included within this document and any supplemental documentation provided should not be copied, reproduced or redistributed without the prior written consent of US Signal.

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SOURCE US Signal

FAQ

What companies are involved in the acquisition announced on September 3, 2024?

US Signal Company, has acquired OneNeck IT Solutions and OneNeck Data Center Holdings from Telephone and Data Systems, Inc. (NYSE: TDS).

How many data centers does US Signal now have after the acquisition?

After the acquisition, US Signal now has 16 data centers, up from its previous 10 locations.

What new geographical areas does US Signal gain from the OneNeck acquisition?

US Signal gains a West Coast presence with new data centers in Phoenix, Arizona; Denver, Colorado; and Bend, Oregon. It also adds Madison, Wisconsin; Minneapolis, Minnesota; and Des Moines, Iowa markets to its fiber network.

How does the acquisition affect US Signal's commercial power management?

The acquisition more than triples the commercial power under management for US Signal.

What is the impact of the acquisition on US Signal's data center square footage?

The acquisition quadruples US Signal's data center square footage.

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