T-Mobile US has announced a significant strategic move by forming a joint venture with global investment firm KKR to acquire fiber company Metronet. This agreement aligns with the wireless carrier's ongoing ambition to expand its broadband portfolio. The transaction is expected to involve a substantial investment of approximately $4.9 billion at closing, enabling T-Mobile to secure a 50% equity stake in the joint venture alongside complete ownership of Metronet's residential fiber retail operations and clientele. Metronet is a notable player in the fiber network space, boasting a robust infrastructure that encompasses over 2 million homes and businesses across 17 US states.
This acquisition marks a pivotal moment for T-Mobile, as it aims to leverage Metronet's expansive footprint to strengthen its broadband offerings and enhance customer connectivity solutions. "This deal is not just a business transaction; it’s a unique opportunity that allows T-Mobile to confidently build upon its successful trajectory in the broadband sector," said T-Mobile’s Chief Executive Officer, Mike Sievert.
He emphasized the deal's significance in providing accessible, high-speed, and reliable connectivity options to a broader customer base throughout the nation, thereby complementing the company’s wireless growth strategy. Under the terms of the joint venture, T-Mobile will assume full responsibility for the acquisition of residential customers and the corresponding support services.
The company has stated that it does not foresee any additional capital investments beyond the initial contribution to the joint venture. The forecast for Metronet post-transaction appears promising, with CEO Dave Heimbach projecting an accelerated expansion of fiber network coverage. The goal is to reach millions more households by the decade’s end, transforming Metronet into a wholesale service provider for its retail clientele and aiming for a reach of 6.5 million homes passed by the conclusion of 2030. KKR will play a vital role in this initiative, channeling investments into Metronet through its global infrastructure strategy.
The firm had previously engaged with Metronet in 2021, reinforcing its commitment to fostering digital infrastructure. Moreover, as part of this agreement, the joint venture will also acquire Oak Hill Capital’s existing stake in Metronet, with an affiliate of Oak Hill slated to make a minority investment in the joint venture.
The Cinelli family will maintain its position as minority investors in this exciting new venture. In a related move, T-Mobile recently announced plans to acquire substantially all of US Cellular's wireless operations for approximately $4.4 billion—a transaction that underscores the company’s aggressive growth strategy in the telecommunications landscape..