Telephone and Data Systems, Inc. (TDS) today acquired MSN Communications, Inc., a technology services provider, for $40 million. The deal will enhance the capabilities of TDS’ managed services and hosting subsidary, the company said.

TDS, a parent company to both TDS Telecommunications Corp. and TDS Hosted & Managed Services, LLC (TDS HMS), said its acquisition of MSN Communications will enhance IT solutions provider capabilities and strong customer relationships in TDS HMS’ portfolio.

TDS HMS President Phil LaForge said in a prepared statement that the MSN Communications team has built an “IT services powerhouse acting as a trusted advisor to companies throughout the Rocky Mountain Region.”

“By joining forces with TDS HMS, MSN Communications is adding colocation and cloud services to their already robust services catalog,” he said. “This means customers have even more choice and flexibility in the delivery of their mission critical IT.”

MSN Communications brings a team of 104 employees experienced in planning, engineering, procurement, installation and management of IT infrastructure hardware solutions.

MSN Communications CEO Doug Schuck said in a prepared statement that the timing of this acquisition is just right.

“It’s a tremendous moment in our company’s twenty year history,” he said. “I’m proud of our employees for building a company that is now part of a Fortune 500 organization.”

TDS HMS also noted that it will construct a Tier 3 data center in Douglas County, Colo. The company expects to break ground on the 100,000-square-foot facility early next year. ReliaCloud, a TDS HMS infrastructure as a service (IaaS) solution, will be deployed in the data center to provide a local cloud solution along with colocation services.

TDS Telecommunications Corp. will continue to manage the operations of TDS HMS, which now includes MSN Communications.

Looking for more details? Check back later this week. MSPmentor will be speaking with Phil LaForge about the deal and TDS HMS’ plans.