T-Mobile & KKR Joint Venture to Acquire Metronet

America's fastest-growing fixed wireless broadband provider and 5G leader, T-Mobile, has announced that it has entered into a definitive agreement to establish a joint venture with leading global investment firm KKR which will acquire Metronet including its broadband infrastructure, rapidly growing residential fibre business operations and existing customers. 

A global infrastructure strategy for broadband and fibre solutions 

T-Mobile is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. 

Metronet is one of the fastest-growing pure play fibre companies in the US and is a leading independent fibre-to-the-home (FTTH) operator, which supports 2m homes and businesses with its fibre solutions built on a state-of-the art broadband platform. 

KKR’s investment in Metronet is a part of its global infrastructure strategy, which it established back in 2008. Since then, it has become one of the most active infrastructure investors around the world, currently managing over US$61bn in infrastructure assets. 

T-Mobile is expected to invest approximately US$4.9bn to acquire a 50% equity stake in the JV and 100% of Metronet’s residential fibre retail operations and customers. 

The joint venture will be complementary to T-Mobile’s 5G Home Internet offering, a fixed wireless solution used in over 5m households and businesses across the country using fallow network capacity over the Un-carrier’s 5G network and T-Mobile’s previously announced fibre partnerships. 

This expanded portfolio of offerings will help meet continually increasing consumer demand for higher speed and reliable broadband products.

As part of this transaction, the JV will also acquire Oak Hill Capital’s existing stake. Oak Hill Capital will re-invest to retain a minority position and founder John Cinelli will also retain a minority position once the deal closes.

The transaction is expected to end in 2025, subject to conditions and regulatory approvals. 

KKR and T-Mobile step forward as two global leaders in 5G wireless connectivity and digital infrastructure

For Mike Sievert, CEO of T-Mobile, this is a unique opportunity and a smart, capital-efficient deal that enables T-Mobile to profitably build on its success in broadband and provide fast, affordable and reliable connectivity options to millions more customers as a complement to its wireless growth strategy.

"Metronet is the perfect partner for T-Mobile as a leader in fibre solutions with an incredibly fast build pace, and a top-notch management team," said Mike. “Together with KKR’s strong heritage of corporate partnership and global fibre franchise, we will further expand the Un-carrier’s fibre footprint and deliver real value and choice to customers while addressing a growing demand for fast and reliable broadband."

Since its initial investment in Metronet in 2021, KKR has grown rapidly, including constructing new fibre infrastructure and adding subscribers in attractive, underserved markets.

"As a leading investor in fibre broadband, KKR has a strong track record of building fibre networks in multiple countries around the world," said Waldemar Szlezak, Partner and Global Head of Digital Infrastructure at KKR. "Our new joint venture with T-Mobile will be transformational for the future of the Metronet business. We look forward to benefiting from T-Mobile’s industry-leading customer experience to support the company in reaching its full potential."

Dave Heimbach, Metronet CEO, said that he could not be prouder to expand Metronet’s strategic partnership with KKR and form a new one with T-Mobile. 

"Metronet’s 100% fibre network delivers symmetrical multi-gigabit internet service directly to homes and businesses, perfectly complementing T-Mobile’s industry-leading 5G mobile and fixed-wireless offerings to meet consumer demand for seamless, ubiquitous connectivity,” he said. “With this new partnership, Metronet will expand its fibre network faster and farther, reaching millions more households by the end of the decade."

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