TDS acquires InterLinx Communications
Move aims to boost network capacity and reliability for customers in TDS’ largest market.
TDS Broadband Service LLC, a subsidiary of Telephone and Data Systems, Inc., and operated by TDS Telecom (TDS), announces the signed purchase agreement for InterLinx Communications LLC and its subsidiary Tonaquint Networks LLC in Southern Utah. The agreement includes over 170 miles of fiber optic transport.
“InterLinx built a strong communications company and worked hard to expand broadband capacity in southern Utah,” states Dave Wittwer, president and CEO at TDS Telecom. “When we merge our newly improved network with their system assets and capabilities it will mean great things for the entire state — faster connections and greater economic development potential.”
TDS will focus on working with the local employees to support the customers of InterLinx and Tonaquint Networks going forward. “Implementing a successful integration of the two companies with TDS is our top priority,” adds Wittwer.
All employees will be offered positions and encouraged to stay with TDS to support customers locally, in addition to helping advance the network throughout Utah. Employees from Tonaquint Networks, InterLinx and TDS will operate out of the current InterLinx office space in St. George.
InterLinx provides wholesale fiber connections to businesses, as well as to local ISPs and large carriers. Tonaquint Networks provides residential and business services via both fiber to premises and wireless internet technologies. InterLinx has been in business since 2003.
Terms of the agreement will not be disclosed. The deal is pending regulatory approval at both federal and local levels.
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: impacts of any pending acquisition and divestiture transactions, including, but not limited to, the ability to obtain regulatory approvals, successfully complete the transactions and the financial impacts of such transactions; the ability of the company to successfully manage and grow its markets; the overall economy; competition; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; changes in customer growth rates, average monthly revenue per user, churn rates, roaming revenue and terms, the availability of wireless devices, or the mix of products and services offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K Current Report used by TDS to furnish this press release to the Securities and Exchange Commission ("SEC"), which are incorporated by reference herein.
Sources: TDS Telecom, Telephone and Data Systems