TDS TO SELL ITS ONENECK BUSINESS TO US SIGNAL

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.   

SOURCE Telephone and Data Systems, Inc.