US Signal, a digital infrastructure provider backed by Igneo Infrastructure Partners, is set to enhance its data center capabilities with the acquisition of OneNeck IT Solutions from Telephone and Data Systems (TDS). The deal, which is expected to conclude in the third quarter of 2024, will significantly expand US Signal’s infrastructure footprint across the United States, although the financial details remain undisclosed.
With this strategic move, US Signal will not only increase its data center count from nine to fifteen but also substantially boost its square footage and power management capabilities. The acquisition extends US Signal’s reach to the West Coast, adding data centers in Phoenix, Denver, and Bend, while also expanding its existing fiber network through additional centers in Madison, Minneapolis, and Des Moines.
The merger is poised to enhance US Signal’s service offerings in data protection, disaster recovery, and cloud hosting. OneNeck, known for its secured hybrid IT and multi-cloud solutions, serves a diverse clientele across various sectors such as healthcare, government, and manufacturing, which will complement US Signal’s customer base.
Enhanced Broadband Connectivity across the U.S.
Leadership from both companies has expressed optimism about the merger. US Signal’s CEO, Daniel Watts, highlighted the alignment in company cultures, particularly in customer service excellence and innovation. Similarly, OneNeck’s CEO, Ted Wiessing, anticipates significant benefits for customers from the combined capabilities and US Signal’s commitment to growth.
This acquisition would align with TDS’s strategy to reallocate resources towards expanding its fiber network for enhanced broadband connectivity across the U.S., reflecting a broader industry trend towards consolidating IT infrastructure to better serve regional and national markets. The move is set to position US Signal as a formidable player in the increasingly competitive field of digital infrastructure, targeting mid-market expansion throughout the country.
Mayer Brown was the law firm that advised US Signal. DC Advisory served as its financial advisor. TD Securities served as TDS‘s exclusive financial advisor.
