Telephone & Data Sys Inc Stock Price, News & Analysis

US Signal Company has signed an agreement to acquire OneNeck IT Solutions and OneNeck Data Center Holdings from Telephone and Data Systems (NYSE: TDS). The acquisition will increase US Signal's data centers from nine to 15, extending their footprint to the West Coast and tripling their commercial power under management. The deal is expected to close in Q3 2024, with no terms disclosed. OneNeck provides hybrid IT and multi-cloud solutions through data centers in six states and serves over 1,000 customers in various sectors. US Signal operates a 9,500-route mile fiber network and nine data centers in the Midwest. The acquisition is anticipated to enhance customer service and innovation while supporting growth in the U.S. middle market.

On June 3, 2024, Telephone and Data Systems (NYSE: TDS) announced the sale of its subsidiaries OneNeck IT Solutions and OneNeck Data Center Holdings to US Signal Company. This agreement involves transferring all OneNeck operations, including data centers and cloud hosting solutions. The transaction, which is subject to customary closing conditions, is expected to complete in Q3 2024. While financial terms were not disclosed, TDS plans to use the sale proceeds to support its fiber program, aiming to enhance broadband connectivity across US communities. This strategic move aligns with TDS's goal to optimize asset allocation and improve competitiveness.

T-Mobile (NASDAQ: TMUS) announced its acquisition of UScellular’s wireless operations, including customers, stores, and certain spectrum assets. This move aims to enhance T-Mobile’s 5G network, especially in rural areas, offering improved connectivity and value-packed plans. The transaction, valued at approximately $4.4 billion, comprises cash and up to $2 billion of debt assumption. T-Mobile expects around $1 billion in annual cost synergies post-integration, with completion anticipated by mid-2025. The acquisition promises to spur competition, improve customer experiences, and expand T-Mobile's market reach.

Telephone and Data Systems (NYSE: TDS) announced its board approved the sale of UScellular's wireless operations and 30% of its spectrum assets to T-Mobile for $4.4 billion, including cash and assumed debt. This decision follows a strategic review started in August 2023 and aims to provide significant value to UScellular customers and shareholders. TDS will receive proceeds proportionate to its ownership and plans to invest in fiber infrastructure and reduce leverage. Additionally, TDS announced dividends for Q2 2024. The transaction requires regulatory approval and is expected to close in mid-2025.

UScellular will retain 70% of its spectrum assets and continue to generate revenue from its tower business with T-Mobile as a key tenant. TDS is adjusting its capital allocation strategy to support fiber expansion.

UScellular and TDS have agreed to sell UScellular's wireless operations and select spectrum assets to T-Mobile for $4.4 billion, consisting of cash and assumed debt. The transaction includes 30% of spectrum assets and a new Master License Agreement (MLA) for over 2,000 towers. UScellular retains its 4,400 towers and 70% of its spectrum assets. The deal aims to enhance service for UScellular customers with T-Mobile's resources, including better prices and network improvements. The transaction, approved by both companies' boards, is expected to close by mid-2025, pending regulatory approvals.

Telephone and Data Systems, Inc. (TDS) and United States Cellular (USM) will be webcasting their Annual Meetings of Shareholders in May 2024. UScellular's meeting is on May 21 at 8:30 a.m. Central time, and TDS' meeting is on May 22 at 9:00 a.m. Central time. Investors can access the webcasts on the Events & Presentations pages of investors.tdsinc.com or investors.uscellular.com. Registration is recommended at least 15 minutes before each meeting.

TDS Telecom reported strong financial results in its first quarter earnings report, with a 5% increase in total operating revenues and profitability. The company surpassed 100,000 residential broadband connections in its expansion markets and added 28,000 marketable fiber service addresses. TDS Telecom is on track to reach its goal of 125,000 addresses for the year, with total service addresses growing by 12% year over year. The company is making progress on its long-term fiber strategy, aiming for 1.2 million marketable fiber service addresses and speeds of 1 Gig or higher to at least 80% of its footprint. Demand for higher broadband speeds is increasing, with 78% of customers taking 100 Mbps or greater. TDS Telecom saw a 6% growth in residential broadband connections year-over-year and a 10% increase in total residential revenue.

Telephone and Data Systems, Inc. (TDS) secured a $375 million unsecured debt financing with Oaktree Capital Management, L.P. The funds will be used for TDS Telecom's fiber build program to reach 1.2 million marketable fiber service addresses. The transaction maintains TDS' low-cost, long-dated capital structure with a slight increase in cost of debt and preferred equity. The 5-year loan offers flexibility for early repayment and interest at SOFR +7%.

Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,262 million for the first quarter of 2024, with net income of $12 million and diluted earnings per share of $0.10. UScellular saw a decrease in service revenues but growth in postpaid ARPU and significant improvements in profitability. TDS Telecom had strong revenue and profitability growth due to broadband investments, exceeding 100,000 residential broadband connections in expansion markets.