Yahoo Finance Telephone and Data Systems (TDS) Sells OneNeck to Boost Fiber
Telephone and Data Systems, Inc. TDS has inked a definitive agreement to sell its subsidiaries, OneNeck IT Solutions LLC and OneNeck Data Center Holdings LLC, to US Signal Company, LLC. The transaction, expected to close in the third quarter of 2024 pending customary closing conditions and mandatory regulatory approvals, marks a strategic shift for TDS as it reallocates resources to enhance its fiber program.
As a wholly owned subsidiary of TDS, OneNeck specializes in delivering multi-cloud solutions and managed services across the United States. The divestiture aligns with TDS' capital allocation strategy, aiming to boost competitiveness through targeted investments. This move will provide additional capital to support TDS Telecom's fiber initiative, enhancing broadband connectivity across various U.S. communities.
From an industry perspective, the deal represents a significant consolidation within the digital infrastructure sector. US Signal, a leader in data center and cloud hosting services, will integrate OneNeck’s operations, including data centers and cloud solutions, to expand its data center footprint from nine to 15, including new locations on the West Coast. The transaction is expected to enhance service offerings and provide greater technical capabilities to customers.
Overall, TDS's divestiture of OneNeck will not only streamline its portfolio but also fortify its commitment to fiber investments, fostering long-term growth and improved service delivery.
Headquartered in Chicago, IL, TDS is a diversified telecom service provider offering wireless and wireline services in the United States. It aims to bring more fiber for better services in its current footprint and adjacent areas. The company is making steady investments to strengthen its fiber-based broadband networks. Such strategic moves underscore the company’s efforts to diversify its business from a telecom service provider to a fiber network provider.
Zacks Rank & Key Picks
Telephone and Data Systems currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. ANET, sporting a Zacks Rank #1, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 15.7% and delivered an earnings surprise of 15.4%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
NVIDIA Corporation NVDA, sporting a Zacks Rank #1, is another key pick in the broader industry. It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, the company’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
The company’s GPU platforms are playing a major role in developing multi-billion-dollar end-markets like robotics and self-driving vehicles. NVIDIA has a long-term earnings growth expectation of 30.9% and delivered an earnings surprise of 18.4%, on average, in the trailing four quarters.
Motorola Solutions, Inc. MSI, carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 7.5%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 9.5%.
Motorola provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure service providers. It develops and services both analog and digital two-way radio, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.
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