T-Mobile and KKR announced a joint venture partnership to acquire Metronet, enhancing T-Mobile’s digital transformation and expanding its network capacity. As part of the deal, the joint venture will also acquire Oak Hill Capital’s existing stake in Metronet, with Oak Hill and Metronet founder John Cinelli retaining minority positions. T-Mobile is expected to invest approximately $4.9 billion for a 50% equity stake in the JV and 100% of Metronet’s residential fiber operations, with the transaction slated to close in 2025.
Metronet, the fastest-growing pure-play fiber company in the U.S., currently reaches over 2 million homes and businesses across 17 states. Post-acquisition, Metronet will transition its residential fiber retail operations and customers to T-Mobile, becoming a wholesale services provider. T-Mobile will handle customer acquisition and support, leveraging its retail, marketing, and service expertise while expanding fiber broadband services. Metronet will focus on network engineering, deployment, and customer installation, aiming to pass 6.5 million homes by 2030. This deal will enhance T-Mobile’s fiber footprint without requiring additional capital contributions to the JV.
The partnership also benefits from KKR’s extensivefiber network investments. Since KKR’s initial investment in Metronet in 2021, the company has rapidly grown its infrastructure and subscriber base. This JV aligns with KKR’s global infrastructure strategy, which has managed over $61 billion in assets, investing in leading fiber-to-the-home providers worldwide. The new JV is complementary to T-Mobile’s 5G Home Internet offering, which serves over 5 million households and businesses, addressing the increasing demand for high-speed and reliable broadband services.
- JV Partners: T-Mobile and KKR to acquire Metronet. Financial Investment: T-Mobile to invest $4.9 billion for a 50% equity stake.
- Metronet’s Reach: Over 2 million homes and businesses across 17 states.
- Network Expansion: Metronet aims to pass 6.5 million homes by 2030.
- Operational Focus: T-Mobile to manage customer operations; Metronet to handle network deployment.
- KKR’s Experience: Over $61 billion in managed infrastructure assets globally.
- Complementary Services: JV enhances T-Mobile’s 5G Home Internet and fiber partnerships. Closing Timeline: Transaction expected to close in 2025.
