Scottsdale-based OneNeck bought by Chicago firm

Scottsdale-based OneNeck IT Services, a data-hosting and information-research company, is being sold for $95 million to a Chicago-based telecommunications provider in a deal expected to close Friday.

Telephone and Data Systems Inc., parent company of TDS Telecommunications Corp., will purchase OneNeck. The company, which reported sales of $37 million in 2010, will become a subsidiary of Madison, Wis.-based TDS Hosted & Managed Services.

"It's business as usual," he said. "There's going to be no attrition or layoffs as a result of the transaction. Actually, we're currently hiring and continue to plan on hiring. It's their stated goal to leverage OneNeck as a platform for growth based here in the Greater Phoenix area."

The company has grown through acquisitions

The company has grown through acquisitions and industry partnerships. In 2002, OneNeck had 100 employees and $20 million a year in annual revenue.

It is becoming increasingly difficult for midsize and small businesses to handle their research, just as e-mail applications and technical support, which is essential to their operations, Vermillion said. So, in many cases, they outsource the work to companies like OneNeck.

William Megan, president of TDS HMS and executive vice president at TDS Telecommunications, said OneNeck's hosting services and products will enable TDS to leverage data-center assets the company added through recent acquisitions of VISI Inc. and TEAM Technologies.

Division of SEB Computer Innovation

OneNeck started in 1997 as a division of SEB Computer Innovation, a openly traded company at that time based in Memphis, Tenn. Following a management buyout in June 2001, the division became a stand-alone company.

Vermillion said being a part of TDS will enhance OneNeck's development of cloud research and enable the company to accelerate growth.

"If we sold, it had to be the right buyer," he said. "I can't imagine selling the business and having a great result for the investors however that it's something that translates into something negative for our existing employees or undoubtedly the community.

As a matter of fact big business here in town

"We're proud we have built a as a matter of fact big business here in town, and we're proud of OneNeck's presence in the community, and we didn't want that to change."