Telephone and Data Systems (NYSE: TDS) has decided to up its hosted and managed services portfolio by acquiring privately owned data center service provider TEAM Technologies.
Under the terms of the agreement, which will be overseen and managed directly by TDS, the telco will buy TEAM for $47 million.
By acquiring TEAM, TDS will not only complement its growing portfolio of data centers in the Upper Midwest with three data centers in Iowa and Wisconsin, but also gain access TEAM's information colocation, disaster recovery, and data security capabilities.
"It's clear this acquisition provides a great opportunity for both companies," said Dave Wittwer, president and CEO for TDS Telecommunications Corp. in a release. "TEAM's expertise in power and cooling delivery, physical security and incident response, combined with TDS' networking expertise and transport capabilities, position us well for expanded growth in this dynamic marketplace."
TDS' acquisition of TEAM as a means to bolster its data center and managed network service capabilities appears to be a growing trend for TDS. Last March, TDS bought Minnesota-based data center and managed hosting provider VISI.
Of course, TDS is not the only telco cashing in on the growing data center and managed services trend. On an industry-wide perspective, fellow independent ILEC Windstream bolstered its data center power with the recent acquisition of Infrastructure as a Service (IaaS) solutions and data center operator Hosted Solutions, and on a smaller scale Sidera purchased data center provider Cross Connect Solutions.
For more:
- see the release
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